Nepal government recently implemented a 13% tax on Internet services and 23% tax on liquor industries. These two tax regimes are just an example but the Communist Party of Nepal (CPN) government has decided to tax Nepali people whether they like it or not. And why is so?
 
The government is penniless. It’s broke. The haphazard spending during the Asar (June-July) month before the new fiscal year gave no new shock to Nepalis who are used to the usual misfits by faltering politicians. What more can be true than a new presumed stable government not heeding to its promises? Several critics, in the past, did argue that federalism is never going to work in Nepal. It can definitely work and the government is exactly doing that. If it wants to tax Nepalis then fine but will it prove to 28 million people that it will in return invest the tax money, effectively? Time will only tell us.
 
Five months is not enough to judge a democratic government. And this is why a stable government that lasts four to five years is essential, both for the nation’s young democracy and for the causes of development activities. PM K.P. Oli had expressed his discontentment in the past that he couldn’t do much because he was kicked out of the office after nine months. This is the time he needs to prove: how will he perform in the four-five years? Or even two years?
 
It is understandable that the Nepal government and the new finance minister wants to tax people and sustain federalism. The joy of celebrating decentralization in Nepal is a powerful statement of ordinary Nepalis and it can only translate into a fruitful victory if the seven provinces can march ahead.
 
The argument of being lynched between China and India is now an old-school verbatim. Nepal should go ahead that rhetoric and try to reshape its own foreign and national policy. What’s the new policy of Nepal for taxing people? Can we witness an economic boom and improvement in our development indexes? While talking to several fellow countrymen, they had a similar argument that if the government can improve our lifestyle, it is okay to tax them. This clearly suggests that Nepali people want progress and development–with or without tax.
 
The question now is: what will the Nepal government do with the tax money? And will it continue the tradition of spending the budget in the dreaded Asar month? We can only speculate, wait and watch, and evaluate the government’s performances in the coming days.
 
What’s the way forward for the Nepal government? They should tax on carbon-emitting vehicles and promote electric and mass transit. The government should utilize the collected tax properly sans corruption. And the derogatory tradition of spending budget in Asar month should come to an end. Tax regime should be transparent and free from corrupt people. Also, will Nepalis get tax returns like in the western nations? Only then Nepalis will freely oblige to be taxed and not say anything. However, it is the embedded culture in Nepali society to not say anything but time will only tell if there’s another revolution waiting.
 

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