KATHMANDU, July 23: Finance Minister Dr Swarnim Wagle has said the government is working to remove Nepal from the Financial Action Task Force (FATF) 'Grey List'.
He said Nepal could be removed from the 'Grey List' soon if tax administration is made more transparent, effective and accountable.
Addressing tax officers under the Inland Revenue Department (IRD) from across the country at the IRD headquarters in Lazimpat on Wednesday, Finance Minister Dr Wagle emphasized that the tax administration should closely monitor money laundering offenses.
He stressed the need to bring taxpayers under the tax net through voluntary tax compliance rather than through coercive measures or intimidation.
FATF’s Grey List: A Wake-Up Call for Nepal
The finance minister urged officials to speak openly if there is a shortage of human resources, infrastructure or information technology needed to make tax administration more efficient.
He said officials working in tax administration who contribute to increasing state revenue would be encouraged, adding that the budget for the next four years would lay the foundation for the economy the government aims to build.
Finance Minister Dr Wagle also instructed the department's leadership to take all necessary initiatives to implement the tax exemption measures announced in the budget, make taxpayer incentive programs successful, raise taxpayer awareness, and further digitalize transactions.
