Reforming Nepal's tax system: A pathway to sustainable growth in a stable political era
Summary
Nepal has a unique chance to reform its tax system amid political stability, focusing on predictability, equity, and digital innovation to ensure sustainable economic growth and stronger governance.
Key Points
- Nepal's political stability offers a rare opportunity to implement long-term tax policy reforms that enhance growth.
- The country's tax system faces challenges including a large informal economy and reliance on regressive indirect taxes like VAT.
- Digital integration and transformation of tax administration can reduce evasion and revenue leakages.
- Equity-focused tax reforms and better fiscal management are essential for building a fair and sustainable tax system.
