CNI calls for tax reforms and second phase of economic changes

KATHMANDU: Confederation of Nepalese Industries (CNI) has stressed the need for reforming the tax system and initiating the second phase of economic reforms.

During a 'CNI Discussion' programme organised by the CNI with the Inland Revenue Department (IRD) Director General Ram Prasad Acharya on Tuesday, to mark National Tax Day 2081, CNI Acting President and Vice President Birendra Raj Pandey asserted that the tax system requires improvement and forward movement. Pandey suggested that the scope of taxation should be expanded rather than the tax rate, and policy stability should be maintained to boost investment and enhance the industrial environment.

CNI's Revenue Committee Chair Rahul Agrawal, during a presentation on tax-related issues, highlighted the need to remove various ambiguities within the tax system. Agrawal advocated for tax provisions to be made simple, easy, and transparent. He emphasised that to ensure uniformity in the interpretation of tax provisions, guidelines and procedures with examples should be created for specific areas where ambiguities or differing interpretations exist.

The CNI also emphasised that facilities and concessions provided by certain laws to manage and regulate specific sectors should be incorporated into economic or tax laws to support the promotion of industry and business. Additionally, it was suggested that labels on imported goods should be affixed before they reach the customs point. Highlighting the impact of illegal transactions on government revenue, the CNI urged effective measures to control such activities.

IRD Director General Acharya stated that the government aims not only to collect taxes but also to increase investment. He mentioned that the government has adopted a policy of expanding the tax scope rather than the tax rate, and called for the private sector's cooperation in controlling illegal transactions.

The discussion was attended by IRD Office, Tripureswor Chief Raju Pyakurel, CNI vice presidents Raj Bahadur Shah and Rohit Gupta, CNI governing council members, including industrialists Vijay Shah and Sashikant Agrawal, committee chairs, and other industrialists.