This article appeared on Neil’s Nepal.
The New Federal Budget from Baburam Bhatterai
This (alternate) is the PDF version of the first Budget Speech of Maoist Finance Minster, Baburam Bhattarai. It’s far to large to repost on this site.
I must say that it’s a strange feeling reading the distinct analytical style of Baburam Bhattarai in an official government document, after becoming accustomed to it in underground sources. Memories from pouring over his PHD thesis in college come gushing back. Whatever ones opinion of his politics, this man is without a doubt the best intellect Nepal has to offer. This is a must read for anybody wishing to understand Nepal’s new direction.
Excerpts of Note:
30. The Government is committed to honoring the citizens who lost their lives, and were made disappeared during the armed conflict, and to providing relief to the families who lost their soul-mates. The families affected in such a way will be initially provided a lump-sump financial aid at the rate of Rs. 100 thousand each. Likewise, scholarships will be provided for the education of the children of those who lost their lives. I have allocated Rs. 1 billion 500 million solely for this purpose.
32. I have earmarked Rs. 12 million for the development of Living Together (SAHAJIVAN) Settlements to the families of internally displaced due to the armed conflict.
34. The outstanding monthly allowances of the Maoist People’s Liberation Army Combatants as per the agreement will be made available immediately. Now onwards, I have made a provision to distribute monthly allowances regularly. For this, I have allocated the necessary amount.
39. The Cooperative Public Distribution System can be an appropriate measure for guarantying the supplies of goods on concessional price for the people in general and the laborers, farmers, homeless, students and those below poverty line, in particular. This system can maintain the balance in the market by controlling the tendency of profiteering and creating artificial shortage of goods by the private sector to fuel the crisis further. But the poor, disadvantaged and conventionally exploited people cannot be organized in Cooperatives without empowering them technically. In view of this, annual subsidy at the rate of Rs. 100 thousands will be provided to 4,000 Consumers cooperatives, one each for all village development committees and one in each for a cluster of 30 thousand populations in municipalities. The Cooperatives that will be established regionally with a strong presence of the laborers, Dalit, the poor and students will receive such subsidy. The Department of Cooperatives will expand the training programs to enhance the capacity of such Cooperatives. For this, help will be sought from the social mobilizers who are working in various programs of on-governmental organizations and Government of Nepal. Such Cooperatives must maintain their account accurately in a transparent way and must show their account to District Development Committee and the concerned local body as and when asked for. For this, I have allocated Rs. 400 million.
40. The identity card will be distributed to the families below the poverty line in those districts where the poverty alleviation programs are being implemented. For other districts, the District Development Committees will provide identity cards by identifying such families. The provision will be made to sale most necessary consumer goods to such identity card bearers on concessional price through Cooperative Shops.
43. Any kind of obstruction or erection of check post is prohibited on national highways and feeder roads in order to ease the transportation and reduce the cost of transportation of essential goods including food items. All the obstructions will be removed within mid-December, 2008 by installing close circuit televisions or other electrical vigilance system at the checkpoints of Department of Revenue Investigation, Police, Army and other agencies. Nobody will be allowed for syndication or cartelling in public transportation and movement of goods
45. To ease the supply of petroleum products, the monopoly of Nepal Oil Corporation will be ended momentarily and a Regulatory Agency will be set up with the inclusion of private sector for playing the facilitating role in petroleum products transactions.
46. The system of automatic price adjustment with the market price of petroleum products will be established. The mechanism will be set up to manage the sale of the petroleum products by the Nepal Oil Corporation as per the purchasing price to be used by low income people and students as household fuel on the concessional price.
49. Debt has been waived of those borrowers affected by natural disasters and the conflict, the small farmers below poverty line, and the household entrepreneurs borrowing from Agriculture Development Bank, Small Farmers Development Bank, Nepal Bank Limited and Rastriya Banijya Bank upto the principal amount of Rs. 30 thousands, and full interest due and all kinds of penalties on the loan amount of above Rs. 30 thousands upto Rs. 100 thousands. Such waived amount is estimated to be Rs. 9 billion 180 million as per the available statistics; the Government of Nepal will pay to the concerned banks such amount within the next ten years including this Fiscal Year. I have earmarked Rs. 400 million for this purpose. Ministry of Finance will issue a detailed procedure in this regard within mid-November 2008.
51. The reconstruction programs of physical infrastructure damaged due to the conflict will be implemented with high priority. Rs. 4 billion 500 million is estimated for reconstruction of public buildings, bridges, communication tower and airports damaged due to the conflicts. I have allocated Rs. 1 billion 280 million in this Fiscal Year with a view to completing this work momentarily
52. Road construction, income generating and livelihood training programs in 20 districts and drinking water projects in 38 districts will be started under the Rural Reconstruction and Rehabilitation Sector Development Program for the reconstruction and rehabilitation of the physical infrastructures damaged during the internal conflict and people’s war, infrastructure not maintained or fully or partially obstructed construction in rural and urban areas. I have allocated Rs. 820 million 370 thousands for this program.
56. To increase agricultural productivity through the slogan “Cooperatives in every village, food storage in every house”, small farmers will be motivated for farming through cooperatives models. The agriculture farming will be encouraged, on the basis of feasibility and without encroachment, utilizing the community forest, freed Kamaiyas area, new aforestation area, barren land under the electricity transmission lines and public barren lands by organizing the Dalits, socially poor and disadvantaged ethnicities, women, homeless, freed Kamaiyas and landless into Cooperatives. I have allocated Rs. 85 million for providing incentives to cooperative farming. The Ministry of Agriculture and Cooperatives will publish the detailed procedures, amend and revise the directives within mid-November and implement accordingly.
60. I have allocated Rs. 60 million to increase direct participation of the tea producing farmers in tea processing and marketing management, and to extend capital grant to potential tea producing cooperatives for the establishment of tea processing factories. Such capital grant will be equivalent to 25 percent of the total cost of the machinery and equipment to be determined based on their investment proposals.
71. There is no possibility to increase agriculture production unless year-round and reliable irrigation arrangement is ensured for the wide-field in Madhesh and elevated-land in hills. Therefore, a green revolution will be brought in for the maximum utilization of vast amount of surface and groundwater. In addition to ground water irrigation projects, large and medium-sized irrigation projects in Terai, and medium, small and projects based on new technology will be implemented in hills and mountain areas to ensure year round irrigation. A sum of Rs. 5 billion 800 million has been allocated for the irrigation sector which is an increase of 42.60 percent compared to the revised estimate of last Fiscal Year.
78. A High Level Scientific Land Reform Commission will be formed for the abolition of feudal land ownership and production relations. I have made necessary allocation for this purpose.
81. Haliyas will be rehabilitated in a dignified manner by totally setting them free of Haliya practices. Bonded laborers and their families, yet to be rehabilitated, will also be rehabilitated in this Fiscal Year. Similarly, continuity has been given to the bonded labour entrepreneur development, skill development, model vegetable farming and land exchange and adjustment programmes by allocating Rs. 150
million.
85. It is unfortunate that the factories established for the production of agricultural tools to be used by the farmers for modern farming, and by others for the development and construction works, are now closed. Likewise, some other government-owned industries also remain closed. This can be seen as a gross misuse of assets and resources. In this context, Agriculture Tools Factory of Birgunj and Hetauda Textile Mills will be brought back into operation in this Fiscal Year. Once these factories
are operationlised, fixed percentage of shares will be sold to the laborers and, also to the public. In order to ensure markets for the textiles to be produced, Heatuda textile mills will be developed as a factory producing textiles to be used by Nepal Police, Armed Police and the Nepalese Army. Possibility of re-operatinalisation of Birgunj Sugar Facotry will be pursued through technical valuation. Special
programmes will be implemented to increase productivity of the highly labour-intensive Biratnagar Jute Mills and Gorakhkali Rubber Industries. To ensure market for the products, Governmental agencies will purchase tires to be produced by Gorakhkali Rubbber Industry. For all of this, a sum of Rs. 300 million has been allocated.
87. The Act relating to the special economic zones will be enacted in this Fiscal Year. Necessary provisions are made in the accompanying Finance Act for providing customs and income tax exemption facilities in the special economic zones.
88. There remains a huge potentiality for producing cement in the country. However, private sector has not been able to establish cement factories due to the lack of basic physical infrastructure such as electricity and roads. In this context, and with a view to encouraging private sector for the establishment of cement factories in Udaipur, Hetauda, Dang and Surkhet, the government will construct access roads to limestone pits, and will also extend electricity transmission lines. In order to accelerating the pace of the establishment of infrastructural industries, to increase Nepal’s export capacity and to increase industrial processing of local resources, special economic zones will also be developed in Jhapa, Dhanusha, Birgunj, Panchkhal, Jumala and Dhangadi. I have allocated a sum of Rs. 600 million for the development of these two industrial infrastructures.
93. The load shedding in the industrial corridor will not be ended. To ensure uninterrupted power supply, initiative will be taken to establish a thermal plant on public-private partnership near dry ports in Biratnagar and Birgunj. The emphasis will be given for energy security by developing bio-fuel. I have allocated Rs.50 million for the development of bio-fuel.
98. The Government will make available public and barren land on long term lease to the private sector if they want to establish dairy industries, amusement parks, tourist rest houses and resorts, hotels, universities and technical institutes on their own investments.
101. As motorable roads are being built at the existing trekking trail in Annapurna area, a feasibility study will be carried out and necessary process will be followed with a view to opening new trekking routes at Lamgunj-Annapurna, Lamjung-Manaslu, Gorkha-Manaslu areas and up to Manasrover for which base point will be Khaptad. With a view to providing tourism benefits to the residents of trekking routes, an integrated program consisting of agriculture, tourism training and marketing will be implemented.
104. A royalty waiver will be provided to expedition groups for 5 years from the beginning of this fiscal year who intend to climb Himalayas in far east and mid-west regions. In order to attract climbers in all seasons, a discount will be provided on the fees in summer and winter seasons.
105. The construction of International Airport at Nijgharh, Bara will begin from this fiscal year. Similarly, the construction of Regional Airports at Pokhara and Bhairawa will also be started. I have set aside Rs. 200 million for these projects, which will be constructed on public-private partnership basis. I have proposed Rs. 950 million for the aviation sector by substantially increasing the allocation compared to revised estimate of last fiscal year
108. The construction of Kathmandu-Terai Fast Track Road under BOOT will be initiated with high priority from this fiscal year. I have allocated Rs. 171.7 million for management and land acquisition activities under this project for the current Fiscal Year.
109. As of now, 6 districts which are still not connected by roads are lagging behind socially and economically. Roads construction will be intensified to meet the commitment of connecting every district by roads within 2 years. Motorable roads will be constructed in Solukhumbu, Bajura and Manag districts within current fiscal year, while continuity will be given to ongoing road construction at Humla. Similarly, road construction connecting headquarters of Dolpa and Mugu Districts will be continued. I have allocated Rs. 450 million for the construction of these roads.
110. I have allocated Rs. 150 million for the construction of electric Railways in Terai from Mechi to Mahakali. This will also cover upgradation and widening of Railways at Jainagar-Janakpur-Berdibas and to carry out study for the expansion of Kathmandu Pokhara Railways
111. I have allocated Rs. 125 million for the construction of North-South Highway which will consist of Mahakali, Karnali, Kaligandaki and Koshi Highway. Survey design will be carried out for Mechi Highway consisting of Kechana-Ilam-Phidim-Taplejung\u2013Olanchungola, Seti Highway consisting of Tikapur-beni-Lode-Sanfebagar-Khaptad-Chainpur-Urailek-Taklakot. At the same time, detailed survey design as well as the construction work will be carried out for Bharatpur-Thori alternative road form this fiscal year.
115. I have allocated Rs. 99.8 million for the construction of Shahid Marga (Tila-Ghartigaun-Thawang-Rukumkot).
124. The ongoing construction work of 25 bridges on the main roads and feeder roads will be completed and the construction work of 100 bridges will be continued in this fiscal year. The design and construction of some main bridges including Tamor, Arun, Dudhkoshi, Trishuli and Kaligandaki will be started. The designing of Mechi bridge, Rajapur bridge and Chataraghat bridge of Koshi will be completed and construction will also be started. For this, I have allocated Rs. 710 million.
125. I have allocated Rs. 400 million for the installment of Belly bridge for the immediate operation of transport over those rivers where it will take time to construct the bridges, although roads are already constructed to link the district headquarters but transport is not in operation due to lack of bridges.
126. I have proposed Rs. 13 billion 910 million for the road transport sector, which is an increase of 77.14 percent in comparison to the revised expenditure of the last fiscal year. The large amount of budget like this had never been allocated for the construction and upgradation of roads on a massive scale. Considering the construction of roads and bridges which I have mentioned above, this year will indeed be a “Year of Construction .”
128. A high-level power sector development committee under the chairmanship of the Prime Minister will be established to materialize the objectives of producing and utilizing 10,000 MW hydro powers in the next 10 years. Becoming self reliant in power sector can ensure higher economic growth. This committee, keeping in mind the development of hydropower as a main focus, will develop a national energy security policy for the next 40 years on the basis of national consensus.
129. The construction of run of the river type projects, namely, Upper Tamakoshi- 456 MW, Upper Trishuli A-60 MW, Rahughat\u2013 30 MW and Naumure 245 MW, totaling 791 MW, will be started this year. Likewise, necessary works will be initiated to start the construction of Upper Trishuli 3 B - 40 MW, Tamor-Mewa - 110 MW, Upper Seti - 127 MW, Dudhkoshi - 300 MW, Tamakoshi 2 and 3 - 500 MW, West Seti - 750 MW, totaling 1827 MW from both the government and private sectors.
130. Middle Marsyangdi Project of 70 MW will be completed this year. Ongoing projects like Chameliya (30 MW) and Kulekhani Third (14 MW) will be constructed quickly and there will be no shortage of funds for the implementation of these projects. The electricity demand will be managed to provide relief from load shedding. The incentives will be provided for the use of energy efficient electrical gadgets such as capacitor, CFL bulb, tube light, choke, etc.
131. Special emphasis will be given for rural electrification from this fiscal year to meet the commitment of distributing electricity in all villages and households in the next 10 years. For this, I have allocated Rs. 1 billion 520 million for small hydro power projects which is implemented through alternative energy program. A system will be put in place in which there will be no chance to divert the power royalty received by District Development Committees in other sectors until and unless there is a complete rural electrification.
137. Food for Work Programme will be implemented in the region/sub regions where there are food shortages and no road networks. Emphasis will be given to complete the ongoing projects. Track opening of 125 km motorable road will be carried out by providing 6466 MT of food in the 22 districts where there are food shortages under Rural Community Infrastructure Works Programme. I have earmarked Rs 275.2 million for this programme
141.Feasibility study of electronic Trolley Bus and Cable Car will be carried out for developing alternative means of transportation and will be implemented on gradual basis.
149. I propose to observe the Fiscal Year 2008/09 as “Alternative Energy Year” aiming at accelerating socio-economic development, improving ecological condition, and resolving the energy crisis currently facing the country by ways of wider use of alternative and renewable energy, involving community, increasing awareness and promoting development of such energy.
150. Small hydroelectricity projects of up to 1 Megawatt will be promoted for distributing electricity to all Nepalese. In such projects, existing government subsidy will be increased. Similarly, existing subsidy from the Government to biogas and improved stoves will be increased.151. 20 Megawatts of electricity will be generated in the periphery of Kathmandu Valley through Windmill on basis of Public Private Partnership mode of investment. Similarly, generation of wind energy will be expanded to other potential regions.
161. The rivers of Kathmandu valley possess tremendous cultural and environmental importance. But they are polluted. The banks of these rivers have been encroached. During the current fiscal year, drainage processing, construction of road on the banks of the river, construction of parks and afforestation programmes shall be conducted as a campaign as an endeavor to keep neat and clean the Bagmati, Vishnumati,and Dhobikhola rivers in the Kathmandu Valley. Taking sands out of the rivers of the valley will be prohibited. Control dams shall be built in ten places of these rivers. Bagmati Civilization Committee shall conduct this programme by mobilizing, inter alia, the local communities. I have proposed to raise at the rate of 0.5 percent the registration fee charged for buying and selling the land within the municipalities of the Kathmandu Valley to make the funds available for this campaign. As it is estimated that such a change in registration fee shall generate Rs.300 million, the same amount of money has been appropriated to the Bagmati Civilization Committee.
174. Primary education shall be made compulsory and free in pursuance of the state’s declared policy of making education a fundamental right of all and gradually making secondary education free. School launch program shall gradually be extended throughout the nation to attract all to the primary education. Beginning from this Fiscal Year, school education up to class 8 shall be made free and fee for class 8 and 10 shall be reduced to gradually make them free. Free education opportunities shall be provided to all public school students of Karnali Zone and such a privilege shall extend up to class 12 in the public school for all Dalit students across the nation.
177. Educational unemployment has become a problem for the nation due to the failure of linking education with life and productivity. A campaign will be launched following the finalization of vocational technical education together with the school restructuring activity as the problem can only be addressed by bringing in change to the educational structure. The ongoing regular programs of the technical education shall be continued, and in addition to that, technical education annex program will be conducted in 30 schools. Rs. 488.8 million has been appropriated for this.
178. Illiteracy is the main cause and consequence of deprivation and underdevelopment. National literacy campaign shall be launched with the slogan of ” Know Letters, Be Civilized” guided by the determination of eradicating illiteracy in the coming two years. Local literacy volunteers shall be recruited in each ward of each village development committee to materialize this slogan. A total of 35000 youths shall get employment from this program, and this program will be a concrete step taken against illiteracy. Rs. 1 billion 40 million has been earmarked for this program. 208. In order to provide self-employment opportunities to the youths, a Rs. 500 million “Youth Self-Employment Fund” will be established. Non-collateral, concessional periodic loans, up to Rs 200,000 from banks and financial institutions and free vocational trainings will be provided to the youths interested in carrying out self-employment activities in commercial agriculture, agro-Industries or service sector.
226. In line with the commitment made by the Government of Nepal in ILO Convention No. 169 and international manifesto regarding the rights of tribal and indigenous people, I have allocated Rs. 167.8 million to continuity for special program for uplifting and empowerment of caste, indigenous people, neglected, oppressed, dalit, muslim, backward madhesi which have fallen behind from the socio economic development. Access to all programs implemented in local level should be assured for these people. Programs under the sectoral offices in local level will be monitored and audited in line with inclusiveness and gender responsive.
227. There has been an important contribution of women in national economy. In the current year, programs will be implemented in order to attain gender equality for women development by ensuring their participation in economic, social and political process. Gender Responsive Budget Initiative has been implemented. I have appropriated Rs.32 billion 910 million for the directly benefitting programs for women which are 13.9 percent of the total budget.
228. Women development program related to poverty alleviation, gender equality and social inclusiveness being implemented in 1843 Village Development Committees (VDC) will be gradually extended to all the VDCs. I have allocated Rs. 345.4 million for this program.
230. National Women Commission is working in the field of women rights and empowerment as well as in the field of rescue of women suffered from violence and for legal advice. In order to strengthen it by providing resources, I have increased grant amount to Rs. 31.4 million.
238. With a view to reducing poverty, ongoing micro- credit programme will be effectively managed and implemented. A national level micro-finance fund will be established by integrating and consolidating existing whole- sale micro-credits providers. Both domestic and foreign capital will be deposited into national level micro- finance fund, and the fund thus deposited will be made available as credits to rural cooperatives, non governmental and community organizations including micro finance institutions on a concessional terms of interest. Micro finance providing institutions will be encouraged to implement programmes in rural and high hills areas. For this programme, Rs. 100 million will be made available in the Self-reliant Fund to be managed by Nepal Rastra Bank.
246. The civil service, which is the foundation of governance, has not been able to change its mindset to become pro-public and inclusive. It is necessary to change such mindset in the present situation. Therefore, it will be made mandatory to include the ideal sentence “Civil Service for the Public” in each and every activities of the civil service.
251. Identifying the sensitive agencies and areas from the corruption control perspectives, and to expedite investigation of undue and irregular activities and the law suits of corruption charges, all corruption control agencies\u2019 will be strengthened. Anti- corruption campaign will be launched with the support of civil society, non- governmental organization and general public. Possible corruption on public procurement will be controlled and procurement monitoring system will be made effective. To control the collusion and hooliganism at the time of submission of tender, an arrangement will be made to submit tenders through electronic means.
264. While formulating revenue policy, attention has been given mainly to lead country toward industrialization by totally ending feudal structure, adoption of a progressive tax system, transformation of tax administration into an electronic one, narrowing the gaps between rich and poor, coordinating and linking economy to other sectors thorough trade facilitation, attracting foreign investment by creating investment friendly environment, lead a decent life by complying with the tax laws as well as paying taxes for the income earned from business and entrepreneurship, and giving a sense of feeling that the tax paid is also a contribution to oneself. In this context, revenue policies are based on the following objectives;
a. acceleration of country’s economy toward industrialization,
b. maximum mobilization of internal resources for self reliant economy,
c. broadening tax bases instated of raising tax rate,
d. export promotion by attracting domestic and foreign investment,
e. protection to domestic industries and conservation of natural resources,
f. strengthening of tax administration by making it more efficient,
g. special priority for the infrastructural projects,
h. relief to the disadvantaged groups of the society affected by the inflation,
i. strict monitoring of market and control of the illegal trade,
j. controlled sale and distribution of health hazards goods,
k. rationalization of revenue rates committed in bilateral and multilateral
agreements,
l. directing means and sources toward productive sectors.
265. In the capacity of the first Finance Minister of Republic Nepal, I have proposed a budget of special size by discontinuing practices of traditional budget appropriation. This has been done to honor people’s faith, and to meet expectations of the people from the present government. To ensure adequate resources for meeting the allocation that I have proposed, I have adopted following strategies;
a. With a view to giving one time opportunity to pay tax the property or income accumulated by any individual by paying tax on such property or income, irrespective of sources, at the rate of 10 percent at the price of Shrawan 1, 2065. Such tax shall be required to pay by the end of Magh, 2065 on basis of Voluntary Declaration of Income Scheme. After payment of such tax, the property shall be deemed legal and no source of such property shall be investigated. Property of those failing to comply with this provision will be subject to confiscation.
b. House rent tax shall be levied at the rental income at the rate of 10 percent. Exemption of due taxes, fees and the interest has been given to those individual or entity, who has earned house rent income up to Fiscal Year 2064/065 but failed to pay tax under Income Tax Act, 2058, can
declare the income and pay tax at the rate of 10 percent by the end of Push, 2065.
c. Entities conducting business of educational consultations services failing to pay Value Added Tax, can register in VAT by the end of Poush, 2065, if they pay the income tax of Fiscal Year 2063/64 and onwards. No VAT penalty, fees and additional fees charges and interest shall be levied.
d. If any defaulter Brick industries opt to pay tax due, as of the end of Ashad, 2065, by the end of Push 2065, charges and penalties to be imposed on such due shall be waived. In case of defaulter Brick Industries failing to pay due within stipulated timeframe, legal action, including of cancellation of their registration shall be started.
e. 5 percent education service tax shall be collected from private educational institutions on their monthly fees from Ashoj, 2065. Service tax so collected shall be used for the benefit of the poor students of backward and remote areas.
f. Private educational institutions not yet managed to come into the tax net can pay tax on their taxable income shown in their financial audit reports from the beginning to date. If such tax is paid by the end of Push, 2065, no fee, penalty, interest and additional fee shall be levied on income as of Ashar, 2064. In the cases, where private educational institutions fail to utilize such facility, the Government will take legal actions, including of prevention form appearing in the SLC examination, against such schools.
g. Arrangements have been made for urban cooperative agencies and associations to accept tax return along with tax amount of the Income Year 2063/064 assessed on basis of audited report submitted to concerned entity. Filing such return by the end of Push, 2065 will result in waiver of filing tax return of the earlier periods and the tax thereon; no penalty, fee, interest and additional charges will be levied. All cooperative agencies are requested to utilize this opportunity. Those failing to utilize such facility will be subject to severe legal actions, including imposition of taxes for all the past periods.
h. Taxpayers liable to register with Value Added Tax but not registered so far can register themselves by the end of Push, 2065. Such registration within stipulated time will result in waiver of Value Added Tax, additional charges, interest and penalty of the previous years.
i. Custom duty and excise duty on alcohol, cigarette, and tobacco have been increased to discourage the consumption of the goods hazardous to health.
j. Government entities involving in collection of non-tax revenue will be mobilized to review and determine appropriate rate of non-tax revenue (royalty, dividend, penalty, fee). Similarly, working procedures in the Government and public corporations will be reformed so as to identify the sources of revenue growth
266. I have adopted following strategies and working procedures for the implementation of above mentioned revenue policies;
a. Market monitoring will be intensified to bring persons and entities into tax net, and also doing their business in disguise. From this Fiscal Year, surveys will be carried out to assess the transaction amount of all business entity to determine whether their transactions are within the minimum threshold of the Value Added Tax,
b. Smuggling and illegal import will be controlled through border patrolling and the development of economic information system.
c. In order to make customs valuation system more scientific anomalies in valuation will be removed and different valuation methods used by different customs offices will be made transparent and clear.
d. Revenue investigation system will be strengthened to control the leakages in tax revenue. Likewise, income and expenditure of the high profiled people will also be monitored.
e. Special programs will be implemented to bring people into the tax net who are earning high income from their profession and business. Impunity being observed in various profession, business and administration will be brought to a halt.
f. In order to control leakages in excise effectively, movement of the excisable commodities will be watched effectively. Likewise, sticker management will be made proper and effective.
g. General increment in the vehicular tax has been proposed in order to control vehicular congestion in the Kathmandu Valley and to further contribute toward the mobilization of revenue.
267. I have proposed the following revenue measures to regulate the liquor distribution and to levy the property taxes for social security and development of virtuous conduct in order to remove the evils rooted in the society:
a. Within the next two months, selling of liquor from the daily consumables goods shops will be stopped in the metropolitan, sub metropolitan and municipal cities. For the goods in stock, during this time period the vendors will return back such stock of liquor to the concerned wholesalers, producers or importers and they must accept those items. Directives will be issued within 45 days to fix the places of liquor sale, fix the selling time and allow the sale only for certain age persons and banning the sale of other consumer goods in the liquor shops.
b. Money Laundering Control Department will be established in this Fiscal Year to control the process of converting black money into white money.
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