Budget should focus on investment

HIMALAYAN NEWS SERVICE

KATHMANDU: Revenue Advisory Committee suggested the government to emphasise on increasing investment and production in the next budget.

“We have hundreds of issues to address in the budget but it should have high growth target for production and investment for sustainable economy,” said joint-secretary of the Finance Ministry Bishnu Prasad Nepal while submitting the report to the Finance Minister Bharat Mohan Adhikari here today.

The committee formed to suggest tax policy measures for the budget for fiscal

year 2011-12 has endorsed 386 suggestions collected from 15 experts and 101 institutions from private and public sector.

According to the committee, the report has incorporated 105 suggestions in custom duty, 46 in income tax, 80 in value added tax (VAT), 40 in excise duty, 10 in health service tax, 17 in vehicle tax, 12 in real estate tax and 76 suggestions in other sectors.

According to Nepal, the report has asked to revise customs duty and make valuation more realistic, expansion of non-tax and tax revenue structure, formation of Central Revenue Board and special focus on growing tax evading situation.

Likewise, the committee has also suggested the ministry to reduce energy crisis, solve tight liquidity situation and capital market problems through appropriate measures in the budget, apart from a dozen of suggestions for higher economic growth.

The report has stressed on sufficient investment on infrastructure development, export promotion and import substitution, building competitiveness of agriculture products, and development of socially justifiable supply system. The committee has analysed eight different issues, including problems and challenges in taxation, of revenue including economic situation of the country to draft the suggestions, Nepal said, adding that the committee has organised a series of discussions with Federation of Nepalese Chambers of Commerce and Industry, Confederation of Nepalese Industries and other private sector organisations during the preparation of report.