November 22: Finance Minister Yuwa Raj Khatiwada has said that the government will not rebate Value Added Tax (VAT) during his tenure as the finance minister. The minister said that VAT rebate is harmful to the entire economy.

Finance Minister Khatiwada made such comments during an interaction organised by the Inland Revenue Department (IRD) and the Confederation of Nepalese Industries on Wednesday (November 21) to mark the Tax Collection Week in the capital.

“VAT is collected from the consumers. But it is the businessmen who have been demanding that VAT should be refunded,” said the minister.

He further stressed the need to widen the base of tax. The minister said that the government has not yet been able to bring the agriculture sector under the ambit of tax. On the other hand, those who have been paying taxes since years have been bearing the brunt of additional taxes. In this context, the government is preparing to upgrade the country’s tax collection system to international standard, he said.