Capital mobilization is the main problem

I was worried that someday the country will be like Sri Lanka. We passed that time too. In that sense, we think that our confidence should increase. We survived a very special situation. We have come through bad times.

The other side is the fact that our economy is in a slow state. Before the corona epidemic, we had invested heavily in reconstruction. As a result, there was no significant decrease in revenue due to the corona epidemic. Even though it was rebuilt on a mass scale, it did not have an effect on the Covid. But then gradually the effect started to appear. In terms of why the highest revenue was raised last year, the effect of the corona epidemic has been exposed in the economy. After that, there are some signs of revival. We are not in a situation where we should be very disappointed, the economy is dead. However, it is important to see whether the speed we were supposed to go by slowed down.

Economic transactions are less in a slow economy. Due to the decrease in effective demand, financial transactions decreased. Low revenue in the country is not the main problem. But the main problem is that the economy is not running, financial transactions are not increasing. If economic transactions increase, revenue collection will naturally increase. Rather than increasing revenue, the focus should be on promoting economic activities. As economic activities are promoted, revenue increases. We went through the most difficult situation. The economy is surviving and moving towards growth. There is no need to move forward with a small view. The private sector has been saying that the confidence of industrialists has decreased. What increases the confidence of industrialists? Let's sit and discuss with the private sector and the government. Let us identify what will increase the confidence of the private sector. Some time ago, I thought that the morale of the private sector had decreased due to interest rates. The interest rate decreased to some extent. Even now the interest rate is decreasing. This is not the only problem. So let's get to the depth of the problem. The problem of the businessman is the problem of the country. Businessmen's problem is not only businessmen's problem but also the nation's problem. This kind of generosity should be considered and moved forward.

Since the development work was started very late, it is necessary to improve everything. The deposit and credit level of the bank is not low compared to other countries. But the return on investment is a little less? That's why the problem? Instead of the private sector and the state blaming each other and pointing out weaknesses, we should do self assessment and move forward hand in hand to boost the economy.

We have said that we will make a separate integrated revenue policy. We will do it next time. The six objectives mentioned in the budget statement are the revenue policy. Emphasis on increasing investment in the social sector, focus on making economic activities sustainable, and sustainable economic stability are our revenue policies.

If there is a revenue policy in the economic slowdown, we can improve it. We identify problems for improvement. After accepting the problem, the starting point for improvement is. Even in terms of revenue, if there is a weakness somewhere, it should be corrected and moved forward. We have said that industrial materials will be protected at one level. In terms of making economic activities viable, we have given discounts on the import of industrial machinery and spare parts. In some cases it may not be enough.

Our attention has been drawn to the customs valuation method and the actual transaction. In terms of customs, most trade is with India. We have proposed a custom mutual assistance arrangement with India. After the signing between the two countries, the problem will be reduced. We can keep information about the business in advance. It reduces the chance of leakage. We are taking the initiative. The value of the transaction coming from one channel and the value of the transaction coming from another channel should also be reliable. In terms of customs clearance, we are preparing to go for the trusted business person model rather than for every item. There are complaints of under-valuation and over-valuation. To improve it, both the government and the private sector should go hand in hand. In terms of

inter-agency coordination, there are complaints that it happens repeatedly even after passing the customs check. We have solved the problem by coordinating with the Revenue Research Department under the Office of the Prime Minister and Council of Ministers. After the goods have passed the inspection, they are stored in the online database. If there is any error, we can see and correct it long after the goods have been separated. We pay attention to those issues through inter-agency coordination. Without capital infrastructure, there is no capital formation. This is our problem. At one time, real estate trading and share trading were seen as attractive and productive. Therefore, instead of listening and going, it will develop and become sustainable. Like, the price of real estate increased unnaturally. There is no situation to buy land and set up industry. Therefore, it is necessary to think about whether it is appropriate to keep increasing the price of real estate. Share trading is also the same. Capital mobilization is the main problem. After recirculation, it comes into the economy. In terms of investing, we became flexible during the corona epidemic. It did not return. There was a problem paying back.

Sometimes if the tariff rate is unnaturally high, it encourages illegal trade. At that time, we will consider it while formulating the revenue policy. If the government has done so in any matter, it should be revised after discussion. Regarding the single tax, we have heard complaints that the provincial and local levels levied taxes separately. There was a complaint that we imposed additional tax on tea in Kosi. Regarding the tax system, the constitution and other laws have clarified the jurisdiction. We are in the first stage of federalism. If there is any, we will proceed by amending it. Facilitation will be done by the federal government. Regarding banana peas, we have agreed to the recommendation of the Ministry of Industry, Commerce and Supply in terms of industrial raw materials. From time to time permission is obtained for the importation of banana and peas.

For the past few years, we have turned from production-oriented to business-oriented, i.e. import-oriented. There would be a problem at some point. Now that problem is happening. In the future, we should go into how to expand and improve the product-based items. In the past, we used to export paddy and rice from the southern corridor. Tobacco and jute were cultivated. Sugarcane was cultivated in Birganj. Which type of economic activity was based on the past. It could not develop on that basis. Some need to be upgraded. It should be done in a way that benefits the country rather than individual businesses.0

(The author is the revenue secretary of the Ministry of Finance)