Finance Minister Rameshwar Prasad Khanal has acknowledged that one of the main reasons for low investment in Nepal is the country’s complex tax structure. Speaking at an interaction program organized by Siddhartha Chamber of Commerce and Industry in Bhairahawa, he stated that the current tax system imposes unnecessary burdens on businesses and investors, emphasizing the urgent need to make it modern, simple, and reliable.

According to the minister, Nepal’s economic challenge is less about the size of the budget or limited resources and more about the weak capacity to implement it. He highlighted the need to prevent plans from remaining only on paper and stressed simplifying public spending, project management, and government procedures to make them more efficient.

Minister Khanal pointed out that the lack of trust between tax administration and taxpayers creates discomfort even in legitimate businesses. He emphasized the necessity of fully digitalizing the tax system, which would increase transparency, prevent misuse, and foster an investment-friendly environment.

He made it clear that unless the overall tax structure is made simple, transparent, and predictable, attracting large investments would remain difficult. “The government must shift from being a regulator to a facilitator,” he said, “Complex rules and procedures weaken economic activity.”

The minister also highlighted the need for sustainable and effective coordination between economic policy and monetary policy, stating that aligning both would reduce unnecessary market volatility and strengthen the economic environment.

During the program, industrialists and entrepreneurs urged the minister to immediately operate Gautam Buddha International Airport at full capacity. They expressed concerns that the airport’s inactivity is negatively impacting the province’s trade, industry, and tourism, calling on the government to find a quick solution.