August 16: The government and the private sector have expressed conflicting views regarding tax collection. The government is of the view that it should increase the tax base while the private sector stakeholders have suggested the government to increase the scope of tax instead of the tax base.

Arjun Prasad Pokharel, secretary at the Ministry of Finance, recently said that the government's revenue collection target for the current fiscal year could be met by increasing the tax base.

Secretary Pokharel expressed such views during the 'Management Seminar 2080' organized by the Inland Revenue Department on Tuesday.

Speaking on the occasion, Nepal Chamber of Commerce President Rajendra Malla said that the government could meet its revenue collection target if the scope of tax is extended rather than its base.

Stating that a huge number of enterprises and individuals were still out of the ambit of tax, he pointed out the need to bring them under the taxation system.

According to him, 40 percent of goods were being imported through the 'Grey Market'. He stressed that it should be brought under the scope of taxation.

Similarly, Anjan Shrestha, senior vice-president of the Federation of Nepalese Chamber of Commerce and Industry (FNCCI), said that taxes in Nepal were higher than other countries in South Asia.

"The growth rate of revenue is negative as compared to the growth rate of the gross domestic product (GDP)," he said.

Shrestha also expressed concern that there were no signs of improvement in the national economy in the current fiscal year.

Likewise, Birendra Raj Pandey, vice-chairperson of the Confederation of Nepalese Industries, said that the taxation system of Nepal should focus on manufacturing sector rather than being import-oriented.

Meanwhile, Secretary Pokharel underscored the need to optimize technology to reduce the cost of revenue collection.

"The cost of revenue collection has increased. We need to get rid of the manual style of working unlike in the past. We need to optimize technology," said Finance Secretary Pokharel, urging the concerned authorities to emphasize implementation of the new provisions in the Financial Act.

He also expressed hope that the taxation system in Nepal would improve through systematic development and capacity building of the employees.