Nepal's Finance Bill Revised Four Times, Drawing Scrutiny Over Process

Nepal's government is facing scrutiny over its handling of the Finance Bill, which has been revised four times in the days following its initial publication. The repeated alterations to tax rates and provisions have raised procedural and transparency concerns among stakeholders.

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Any amendment must be approved by the Cabinet and passed by Parliament. Tax rates cannot be repeatedly changed immediately after the budget is presented. Such repeated revisions without due process raise questions about the finance minister’s stability and create suspicion.

Former finance minister Surendra Pandey emphasized that while the finance minister can amend tax rates, it must follow a defined legal process involving Cabinet approval and parliamentary passage. "Tax rates cannot be repeatedly changed immediately after the budget is presented," Pandey stated, adding that such actions undermine confidence in the budget process and create suspicion.

Lawmaker and former finance minister Barshaman Pun echoed these concerns, accusing the government of attempting to manipulate tax policy through arbitrary changes. He noted that past corrections were typically for minor errors, not significant alterations to provisions or tax rates. "Such actions raise suspicion of possible behind-the-scenes adjustments," Pun said.

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In the past, only minor errors such as typographical mistakes or duplication were corrected. But never were new provisions introduced or tax rates significantly altered like this. Such actions raise suspicion of possible behind-the-scenes adjustments.

Finance Minister Swarnim Wagle acknowledged the revisions but characterized them as minor technical errors. He informed Parliament of the changes and pointed to instances where up to 40 changes were made in previous years. However, when questioned about a specific change regarding VAT exemptions for electricity consumption, the minister stated he was unaware of that particular revision. The bill also introduced a reduction in road construction duty for electric vehicles.

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Two or three errors were identified. These were minor mistakes. Parliament has already been informed. Up to 40 changes were made in the previous years as well.