Government Taking Steps to Formalize Economy, Says Finance Minister Wagle

Finance Minister Dr. Swarnim Wagle has said the government has taken steps for the long-term formalization of the economy. Responding to lawmakers’ questions on the Economic Bill during Friday’s House of Representatives meeting, Minister Wagle spoke about tax rates and urged lawmakers not to be misled. He said he was surprised to hear contradictory views from lawmakers who came with progressive slogans but opposed progressive taxes.

Minister Wagle said progressive tax means a system in which those with higher income and capacity contribute more to support those with less capacity. Referring to the electricity sector, he said the sector had reached its current level after investment worth trillions and tax exemptions over many years. He said the private sector now holds around 80 percent of electricity production. Wagle said the government aims to take the sector to the next level by providing incentives that help the private sector sell electricity and expand transmission lines. He added that since the new government has recently taken office, some crisis of confidence still exists, but the budget has been brought in a way that helps build trust.