Nepal’s Finance Minister Emphasizes Need-Based Tax Reforms
Kathmandu, May 5: In a significant move to promote economic growth and address industry concerns, Finance Minister Barsha Man Pun has assured that the tax rates for the upcoming fiscal year will be revised based on need and relevance. Speaking during a meeting with youth industrialists and IT experts at his office on Friday, the Finance Minister vowed that tax rates would not be changed due to pressure or special interests.
Minister Pun emphasized that any changes to the tax rates would be guided by expert suggestions and the country’s economic requirements. This approach aims to create a more conducive business environment and attract investments across various sectors.
Focus on IT, Start-ups, and Innovation for Economic Growth
Recognizing the potential of emerging industries, the Finance Minister informed that the government plans to prioritize information technology, start-ups, and innovation. This move aligns with Nepal’s efforts to diversify its economic base and leverage the opportunities presented by technological advancements.
Minister Pun acknowledged the progress made in the tourism, energy, and cement industries over the past one and a half decades. However, he stressed the need for concerted efforts from all stakeholders to augment economic growth, as Nepal has witnessed only a 4.23 percent economic growth rate in the last three decades.
Geo-Location and Resource-Based Development Plans
The Finance Minister further revealed that the government has a policy to formulate development plans based on Nepal’s geographical location, natural resources, and available workforce. This strategic approach aims to leverage the country’s unique strengths and optimize resource utilization for sustainable economic development.
Assurance of Profits for Investors in Nepal
In a significant move to attract foreign investment, Minister Pun asserted that the government has introduced a new law through an ordinance, assuring profits to any firm that invests in Nepal. This initiative is expected to boost investor confidence and create a more favorable investment climate in the country.
The Finance Minister’s remarks highlight the government’s commitment to implementing reforms, fostering an enabling business environment, and promoting economic diversification through targeted policies and incentives. As Nepal strives to accelerate its economic growth, the focus on tax reforms, information technology, start-ups, innovation, and investor-friendly measures is expected to pave the way for sustainable development and prosperity.
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