KATHMANDU: The government is waiving the penalty fee on the tax debts of those companies that have been slow to pay their taxes. Similarly, the government has been eager to permit these businesses to make the required payments in equal installments.
The coalition government has announced a package for businesses that are unable to pay their tax obligations at a time when the government is having issues with low revenue collection. Many business owners have put off paying their tax obligations because of the lack of business transactions.
The government has also contemplated including social media advertising in the tax bracket. According to the government, a proper billing system will also be used to control the advertising fees that business firms pay to media outlets. .
The government has been forced to enact “austerity measures” due to low revenue collection. In this regard, the government intends to review the report on the unbundling of government-approved programs and designate the relevant officials in accordance. In the public sector, it is anticipated to put an end to the duplication of labor on identical tasks.
The government has also stated that it will reduce ongoing excessive interest rates, claiming that these rates are negatively impacting the economy. Despite the fact that many private companies have been refusing to repay bank loans, the number of defaults on bank loans is rising.
The spread on interest rates has also been one of the government’s main priorities. The government’s top priorities include reviving the struggling industries and ensuring industrial security.
While the private sector has been pressuring the government to lower the exorbitant interest rates being charged by the banks, the government appears to be thinking about addressing the problems facing the private sector.
The current budget system may also be restructured, according to the government. Policy, structure, and execution-wise, the budget system will be reorganized.
The Nepali economy has been struggling with a decline in commercial and industrial production, investment risk, a financial sector liquidity crisis, high interest rates, an expanding trade deficit, low capital spending, declining revenue collection, and a significant decline in the secondary market index.
The government’s top priority will be getting parliament to approve bills that would amend the Public Procurement Act and the Money Laundering Prevention Act. The government has also expressed concern about changing the necessary laws to ensure an environment that is favorable to investment.