Kathmandu, July 23: Finance Minister Dr. Swarnim Wagle has said the government is making every effort to remove Nepal from the Financial Action Task Force (FATF) Grey List by strengthening tax administration and tackling money laundering.
Addressing tax officers from the Inland Revenue Department (IRD) across the country at the department’s headquarters in Lazimpat on Wednesday, Dr. Wagle said Nepal could be removed from the Grey List if the country’s tax administration becomes more transparent, effective and accountable.
He stressed that tax authorities must pay close attention to preventing and investigating money laundering offences, describing it as a key requirement for improving Nepal’s international financial standing.
The Finance Minister also emphasized the importance of expanding the tax base through voluntary tax compliance rather than relying on coercive measures or intimidating taxpayers.
“We should encourage people to comply voluntarily with the tax system instead of collecting taxes through fear or pressure,” he said.
Dr. Wagle urged tax officials to openly communicate any shortages of human resources, infrastructure or information technology that may be hindering the effective functioning of the tax administration.
He assured officials that employees who perform well and contribute to increasing state revenue would be encouraged and supported.
The minister added that the government’s budgets over the next four years would reflect the economic foundation it intends to build.
He also instructed the leadership of the Inland Revenue Department to take all necessary measures to implement the tax exemption programmes announced in the national budget, ensure the success of the taxpayer incentive programme, expand taxpayer awareness campaigns, and accelerate the digitalisation of financial transactions. #nepal
