Finance Minister Rameshwar Khanal Emphasizes Safe Power Transition, Says No Changes in Tax Rates Planned

Finance Minister Rameshwar Khanal has stated that the current government is focused on ensuring a safe and orderly transfer of power. He made these remarks while speaking at the “Public-Private Dialogue on Revenue System Reform” organized by the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) in Kathmandu on Wednesday.

Minister Khanal explained that the government is moving forward with plans to hold elections and ensure a smooth transfer of power. He clarified that, as an interim government, it does not have a mandate to alter tax rates. The government is proceeding carefully, avoiding criticism, and adhering strictly to the law.

He said:
"We must act with caution, avoid criticism, and follow legal procedures. You may have observed that we have not adjusted tax rates at this time. If changes were made, one sector might feel favored, leading to protests from other business groups. The government’s focus is on holding elections and ensuring a safe transfer of power. It would not be appropriate to create obstacles or provoke opposition by adjusting tax rates now. We are not intending to leave this task for the elected government either."

Minister Khanal also noted that any attempt to adjust tax rates at this time could trigger opposition from the private sector.

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