Finance Minister States Government Prioritizes Long-Term Economic Interests Over Short-Term Stock Market Fluctuations

Kathmandu. Finance Minister Dr. Swarnim Wagle has stated that the government's priority is the country's long-term economic interest and long-term policy making rather than the short-term fluctuations of the stock market. Speaking in the House of Representatives meeting on Friday, Finance Minister Wagle clarified that the government aims for economic reform through stable and result-oriented policies. Highlighting the two months since the formation of the new government, Finance Minister Wagle stated that the current government has placed special emphasis on creating an entrepreneurial environment in the country and encouraging honest taxpayers. Describing businessmen as co-travelers of the government, he mentioned that the main objective of the budget is to promote entrepreneurs who honestly pay taxes to the state and believe in fair competition. Discussing the challenges in the tax system, Finance Minister Wagle argued that high tax rates discourage investment. He stated that it would be difficult to attract foreign investment in a country with a high marginal income tax rate of up to 39.5 percent. Clarifying the policy reforms in the economy, he said, 'We are not looking at whether the stock market index goes up or down every hour; we are working on long-term policies that will have an impact for ages. If we are to collect taxes like Norway, the public services provided to citizens must also be of that standard. It is not practical to impose high taxes when the quality of education, health, transportation, and infrastructure cannot be ensured. Currently, even those who have the capacity to pay taxes are fleeing the system. Timely adjustments in tax rates will attract investors and strengthen the revenue base.' Clarifying the direct benefits to the state from reducing tax rates, the Finance Minister expressed confidence that it would be easier to bring those outside the tax net into the formal system due to the existing high rates. He claimed that making tax rates practical would prevent tax evasion and, in the long run, strengthen internal revenue collection.