Mahat defends decision to tax consumable goods

KATHMANDU: Minister for Finance Dr Prakash Sharan Mahat has said that the government levied taxes on consumable goods to reduce dependency on imports.

Responding to questions on the budget for the fiscal year 2023/24 raised by lawmakers in the meeting of the House of Representatives on Monday, he said the decision would protect local producers. “It is natural to have concerns that the decision to levy taxes on consumable goods will impact consumers. The decision was taken to protect local producers,” he maintained.

Mahat said the decision would help in the expansion of local industries, widen the tax net and reduce dependency on imported goods. “We have been hearing criticism on why we are importing even farm products. Taxation is one of the tools to reduce dependency on imports,” Mahat said, adding, “We have also included programs related to farm subsidies in the budget.”

The government’s decision to tax daily consumable goods is drawing criticism from all quarters.