New taxation system should encourage public spending

BIRATNAGAR, March 11 :

Industrialists of the eastern region have suggested to the Tax Review Commission to devise new taxation system in such a way that the government pays equal attention to public spending and tax collection.

The commission, which is led by Rup Khadka, has been collecting opinions on taxation system and policies from industrialists and common taxpayers in different parts of the country.

Industrialists of the eastern region said the government, which is sitting on huge piles of cash collected from taxpayers, has been failing to spend the money effectively.

Industrialist and lawmaker Pawan Sarada handed over their suggestions to the commission. Speaking at the program, Sarada said weak taxation policy was one of the reasons behind low utilization of resources.“"The new tax policy and laws should address this issue”" added Sarada. He also said increment in capital expenditure will create jobs, draw investment from private sector and give a boost to economic activities in the country.

Public spending hovers around 70-80 percent, indicating that a significant portion of the amount allocated for development projects remain unspent.

Source: Republica