Himal Press 
KATHMANDU: Leading economists, activists and policymakers have said that the country’s existing current tax system disproportionately burdens low-income groups while offering excessive benefits to the wealthy and large corporations.
Speaking at an event titled ‘Tax Justice for Urgent Climate Actions and Equitable and Just Transition’ organized in Kathmandu on Monday to discuss Nepal’s growing inequality and the urgent need for progressive tax reform, they said the existing tax system deepening economic disparities and limits Nepal’s ability to fund essential public services and climate resilience efforts.
Lidy Nacpil, a climate and tax justice activist, said countries like Nepal, which are already vulnerable to the climate crisis, lack the fiscal space to invest in climate resilience. “Progressive taxation is not just an economic issue—it is a climate justice issue. Those most responsible for pollution and profit accumulation must contribute their fair share,” she said.
Similarly, Economist Dilli Raj Khanal said Nepal’s existing tax policy has not only widened inequality but also weakened the country’s fiscal capacity to invest in long-term development and climate mitigation strategies.
Also speaking on the occasion, National Assembly Member Anjaan Shakya said a progressive tax system is a prerequisite for Nepal’s sustainable development. “Without higher contributions from wealthier individuals and corporations, Nepal will continue to struggle with underfunded public services and rising social inequalities,” she added.
