Twenty-five years of VAT
Nepal, Nov. 20 -- Nepal introduced value added tax (VAT) on November 16, 1997 to make the commodity tax system simpler and more transparent, and develop a sustainable source of domestic revenue. VAT was launched not as an additional tax but as a replacement for the then sales, hotel, contract and entertainment taxes. VAT became a major source of revenue right from its first year, generating Rs7.12 billion in fiscal 1997-98. The government expects to collect Rs400 billion in VAT in the current fiscal year 2022-23.
This tax currently accounts for about one-third of the total tax revenue. The VAT revenue-to-GDP ratio increased from 2.5 percent in 1997-98 to 6.8 percent by 2021-22. This ratio is much higher than in other South Asian countrie...
Click here to read full article from source
To read the full article or to get the complete feed from this publication, please
Contact Us.