Finance Minister Rules Out 'Closed Competition' in Employee Promotion and Selection

Kathmandu. Finance Minister Rameshwor Khanal has made it clear that implementing 'closed competition' in employee promotion and selection procedures is not feasible.

He stated this while addressing the 36th anniversary of the Employees Provident Fund. He agreed that there should be necessary motivation and compensation packages to enhance employee performance and efficiency, but he could not support closed competition.

He clarified that while the demand for uniformity in the tax rate applicable to the retirement fund is valid, the current interim government cannot make a decision on it. Stating that he is a minister in an interim and caretaker government and does not have the authority to amend the Income Tax Act, he committed to reminding the next Finance Minister about this issue before leaving office.

He said, 'The principle that there should be an equal tax rate for income and social security of the same nature is absolutely correct in policy terms. However, according to the principle of 'no taxation without representation,' only Parliament and elected representatives have the authority to change tax rates. I agree that there should be the necessary motivation and compensation package to enhance your efficiency and competence. But we should not advocate for closed competition. Competition must always be open; I cannot theoretically agree with that.'

He emphasized that the Employees Provident Fund might have to compete with other pension fund management companies in the future, and therefore, both the institution and its employees must be prepared for open competition. – News Agency Nepal