May 31: Finance Minister Barshaman Pun emphasized that the government will not manipulate tax rates to appease any group, stating that the country's economic development requires a thriving private sector.

During a discussion with the Iron Rod Producers Association, Minister Pun addressed their concerns about perceived unfair tax changes in the upcoming fiscal budget.

The association, led by Chairperson Sahil Agrawal, complained about changes in the tax rates on sponge iron, a key material for manufacturing iron rods.

Minister Pun explained that the tax rate adjustments were based on comprehensive data, including reports from the parliamentary committee, the Department of Inland Revenue, historical demands from entrepreneurs, and political recommendations.

Pun insisted that these decisions were fact-based and not influenced by any attempts to appease particular groups or individuals. 

He reassured the private sector that the government does not aim to suppress industries but to help them become more competitive. While he is open to hearing valid concerns and demands from entrepreneurs, he advised against making tax rate changes a controversial issue.

Minister Pun highlighted that many suggestions from major business organizations, such as the Federation of Nepalese Chambers of Commerce and Industry, Confederation of Nepalese Industries, and Nepal Chamber of Commerce, were incorporated into the budget after pre-budget discussions.

The government also signaled that tax rates should not increase significantly due to the recent economic slowdown. Pun noted that the government has set lower targets for tax rates this year compared to last year's 41 percent, aiming to give the private sector more breathing space and reduce operational pressures.