Taxpayer Incentive Program Could Become an International Example If Successful: Finance Minister
Kathmandu: Finance Minister Dr. Swarnim Wagle stated that developing a culture of issuing and receiving VAT bills plays a crucial role in controlling revenue leakage and expanding the tax net.
Speaking at the inaugural announcement event of the Taxpayer Incentive Gift Program on Friday, he expressed that the government aims to make the tax system more transparent and effective through digital systems.
He said, "We believe that encouraging taxpayers to adopt digital mediums and cultivating the habit of issuing and receiving bills will help curb revenue leakage while bringing those outside the tax net into nation-building in a formal and transparent manner. We will continue to refine this. Today, this has been made possible through the combination of technology and policy."
Highlighting that the revenue collection target for the current fiscal year is highly ambitious, Finance Minister Wagle emphasized the necessity of expanding the tax base to achieve it.
He remarked, "This year, we have set a target to collect NPR 1,580 billion in revenue. Therefore, through such programs, our objective is to broaden the tax base and encourage everyone to integrate into the formal economy. We are extremely optimistic that this program will succeed."
Addressing the misuse of VAT bills and fake transaction practices, he clarified that the government would initially adopt awareness-driven measures rather than punitive actions.
He noted, "There are practices related to non-issuance of VAT bills as well as some fraudulent transactions. We will discourage such activities. Initially, we will move forward with a softer approach rather than punishment, attempting to counsel the concerned parties."
He also expressed confidence that if the Taxpayer Incentive Program is implemented effectively, it could serve as a global benchmark.
"If this program succeeds as we envision, we expect it to be emulated at the international level," he concluded.
