No Tax Rate Manipulation for Appeasing Anyone: Finance Minister

Finance Minister Barshaman Pun emphasized the government’s commitment to fostering economic development without undermining the private sector. He made this assertion during a discussion with the Iron Rod Producers Association, which had approached the Finance Minister to address concerns regarding tax rate changes.

Minister Pun clarified that the government aims to incentivize the private sector through the budget. He assured that changes in tax rates, particularly on sponge iron used for manufacturing iron rods, were based on factual reports and recommendations from a parliamentary committee, the Department of Inland Revenue, entrepreneurs, and political figures.

“The decision was not taken at the discretion of the ministers and secretaries or by appeasing anyone,” Minister Pun stated. “We believe that our decisions are correct and realistic.” He further emphasized that the government does not intend to suppress the private sector or shut down industries but aims to make them more competitive through these decisions.

Association Chairperson Sahil Agrawal led a delegation that expressed grievances over perceived injustices in the upcoming fiscal budget’s tax rate changes. In response, Minister Pun reiterated the government’s openness to listening to genuine demands and grievances from entrepreneurs, cautioning against turning tax rate changes into controversies.

Minister Pun highlighted that most suggestions from major private sector organizations, including the Federation of Nepalese Chambers of Commerce and Industry, the Confederation of Nepalese Industries, and the Nepal Chamber of Commerce, were incorporated into the budget during pre-budget discussions.

The finance minister also pointed out that the government has signaled that tax rates should not be increased, considering the recent economic slowdown. He reassured the private sector that the policy decisions aim to provide them with “space” to operate without pressure. “We have set a very low target this year against 41 percent last year. We have decided the policy on the basis of giving ‘space’ to the private sector,” Minister Pun concluded.