Kathmandu. Tax expert Dr. Roop Khadka has said that multi-rate policy is not appropriate for taxation.

He said this at a discussion organised by Society of Economic Journalists (SEJON) here on ‘tax concept and possible areas of improvement’.

He argued that although there is talk of multi-rate tax system in Nepal, it should not be implemented. He said that although industrialists in Nepal have been demanding the implementation of multiple rates, it will have a negative impact rather than a positive one.

“If the tax is implemented in Nepal, there will be no transparency in the tax system, it will create obstacles in economic development and it will have a negative impact on the revenue system,” he said, adding that it would be very cumbersome administratively as well. “It is necessary to inform the industrialists about this on time,” he said. Khadka understands.

Industrialists and businessmen have been demanding the implementation of a multi-rate system in VAT for a long time.