Finance Minister Dr. Swarnim Wagle Clarifies Budgetary Errors

Kathmandu. Finance Minister Dr. Swarnim Wagle has clarified that some minor errors in tax rates during budget preparation have been honestly corrected.

Speaking in the National Assembly on Tuesday, while responding to questions raised on the Economic Bill, 2083, which was received with a message from the House of Representatives, he stated this.

Finance Minister Wagle, clarifying a technical error in the customs duty revision, informed that the customs duty on special carriers for blood and vaccines was intended to be reduced from 30 percent to 15 percent. He explained that since plastic suitcases also fall under the same HS code, the duty on those items technically decreased, and it was later restored to 30 percent, thus it should be understood as a 'correction' rather than an 'increase'.

Speaking in the house, Finance Minister Wagle said, 'Our intention was clear, but due to classification, when the duty on plastic suitcases also decreased, I myself made the adjustment and sent it for printing before the honorable members received the booklet.' He recalled that in the past, numerous customs duties were changed overnight without informing the parliament, and stated that he had corrected the error transparently by writing a letter to the Secretary-General.

Strongly refuting the questions raised about his integrity, Finance Minister Wagle said, 'If anyone proves that even two rupees have been misappropriated, I will leave politics.' He also commented that the allegations made in the house were baseless and malicious.

Regarding electric vehicles, he clarified that the government's policy is that the customs duty on cars with a market price below 5 million rupees should not increase. Similarly, he informed that the upper limit of income tax has been reduced from 39 percent to 29 percent, expressing confidence that this will expand the tax base and encourage voluntary compliance among taxpayers.

Clarifying the VAT imposed on electricity, he said that improvements are being made to the system so that the tariff does not increase for consumers consuming up to 50 units. He stated that the government's objective is to adjust tariffs and make the system transparent without burdening consumers.

Speaking about the fees imposed on education and health sectors, Finance Minister Wagle claimed that the 3 percent fee levied on parents spending on private schools will be used to improve the quality of community schools in remote areas and that this is in line with the principle of 'progressive taxation'. Acknowledging that the revenue collection target is challenging, he stated that capable and honest leadership has been selected for the Inland Revenue Department and the Customs Department, and the government is determined to meet the target of collecting 1580 billion rupees in revenue in the coming year. He also expressed commitment to implementing the budget at its announced size to maintain its credibility.