Mahat hold discussions with members of tax review commission

KATHMANDU, Nov 17 :

Finance Minister Ram Sharan Mahat has directed the High-Level Tax Review Suggestion Commission to suggest appropriate measures for controlling tax leakage.

The commission, which is led by Rup Bahadur Khadka, a tax expert, was formed last week. It has been asked to make suggestions for better coordination and management of income tax, Value Added Tax (VAT) and customs taxes.

Mahat held a discussion with the commission´s chairman Khakda and its members on Sunday.

Minister Mahat had announced to form the commission in budget for fiscal year 2014/15 announced in July.

The need for a tax system review has been felt since long as the tax regime has entered into a new phase and is in need of reforms.

"We have seen big changes in country´s tax regime. Size of the tax from customs was larger in the past. Now income tax and VAT have surpassed customs tax," Mahat said in the meeting.

Total tax collection has increased multifold over the past two decades -- from Rs 12 billion to Rs 450 billion.

Mahat said he was hopeful that the commission´s suggestions would be incorporated in the next budget.

Speaking at the meeting, Khadka expressed commitment to prepare the report at the earliest. The commission has until mid-April next year to submit its report.

Other members in the commission are tax expert Madhav Prasad Dhakal and Chartered Accountant Sudarshan Raj Pandey.

Source: Republica