Finance Minister Rules Out Closed Competition for Employee Promotions, Cites Need for Open Market Readiness

Kathmandu. Finance Minister Rameshwor Khanal has made it clear that the concept of closed competition cannot be implemented in the promotion and selection process for employees. Addressing the 36th anniversary ceremony of the Citizen Investment Trust (CIT), he emphasized that while motivational and compensation packages are necessary to enhance employee performance and efficiency, competition must always remain open. He stated that he cannot theoretically agree with promoting closed competition and directed the institution and its employees to prepare for open competition. Regarding the demand raised by CIT employees for uniformity in the tax rate applied to the retirement fund, Finance Minister Khanal stated that although the issue is policy-wise correct, the current government cannot make a decision on it. He clarified that as a minister in an interim and caretaker government, he does not have the authority to amend the Income Tax Act or alter tax rates. He stated that according to the universal democratic principle of 'no taxation without representation,' the authority to change tax rates rests only with the parliament and elected representatives. However, he committed to drawing the attention of the next Finance Minister to this legitimate demand. The Finance Minister stressed the strengthening of the institution, noting that the Citizen Investment Trust might have to compete with other pension fund management companies in the future. He pointed out that enhancing employee efficiency and institutional reform are indispensable for contending with new market competitors. He advised employees to develop their capabilities to withstand the competition of the open market, rather than being limited only to internal circles. Finance Minister Khanal clarified that the current government will not make legal and policy decisions with long-term effects as the country is on the verge of political transition and government change. He stated that the government is positive about other administrative reforms necessary for the service facilities and career development of the employees. Assuring that the next elected government will address the demands of the employees and inconsistencies in the tax system, he urged the employees to focus on the professionalism and transparency of the Trust.

–News Agency Nepal