Economists urge Govt to reduce income tax, raise civil servant salaries by 25%

www.fiscalnepal.com · 5 days ago

Economists and tax experts have urged the government to reduce income tax rates and increase civil servant salaries by up to 25 percent to boost consumer spending, stimulate private investment, and support Nepal’s slowing economy. During a discussion at the Finance Committee of the House of Representatives, participants recommended revising income tax thresholds and lowering tax rates, arguing that Nepal’s current tax structure has become burdensome. A major proposal included a 25 percent increase in government employee salaries to inject liquidity into the market and increase household consumption.