Opinion | Building a tax system for trust, investment and prosperity
Summary
Nepal’s 2026-27 budget signals a second generation of tax reforms aimed at rebuilding trust, broadening the tax base and encouraging investment. The article warns against policy flip-flops, multiple VAT rates and tax exemptions that could weaken fairness, predictability and revenue.
Key Points
- The 2026-27 fiscal budget commits to launching a second generation of tax reforms in Nepal.
- The article argues that frequent policy changes, exemptions and multiple VAT rates are eroding trust and discouraging investment.
- It calls for paperless, digital tax administration, risk-based audits and better integration of informal and digital economic activity.
- Tax reform should preserve equity, harmonize federal tax procedures and strengthen public finances beyond taxation alone.
