Kathmandu: The Government of Nepal has announced plans to establish a high-level recommendation committee to study the feasibility and relevance of implementing a multi-rate Value Added Tax (VAT) system.
This initiative aims to reassess the current flat-rate tax structure and determine whether a tiered approach—potentially offering different rates for essential goods versus luxury items—would be more effective for the country’s economic landscape.
Finance Minister Dr Swarnim Waglerevealed this move while presenting the federal budget for the upcoming fiscal year 2083/84 before a joint session of the Federal Parliament.
The newly formed committee will be tasked with conducting a comprehensive analysis of international best practices and domestic requirements, eventually providing the government with strategic suggestions on how a multi-rate VAT framework could be integrated into the national tax regime to enhance revenue collection and ensure consumer fairness.
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