Finance Minister Wagle clarifies government holds final authority on tax adjustments

Finance Minister Dr. Swarnim Wagle has clarified that the final authority to adjust tax rates rests with the government. Speaking at a meeting of the Public Accounts Committee held at Singha Durbar on Wednesday, he stated that while the finance minister is the ultimate decision-maker in determining tax rates, it is a matter of collective and policy consensus.

Dr. Wagle emphasized that budget and tax rates are not decided secretly by the finance minister alone but are concluded after extensive discussions with a large group of experts and stakeholders. Clarifying the legal provisions of the Financial Act, he mentioned that according to Section 18 of the Act, the government has the provision to reduce, increase, or completely waive taxes, fees, or charges as needed, regardless of what is written in the prevailing laws.

He described this as a regular and global practice in public financial management, stating that such decisions can be made in any eventuality or special circumstance throughout the year to benefit the people and the state. “Tax rates are not determined secretly by the finance minister alone; a large group discusses and concludes on them. Even after the budget is passed by Parliament, the Act grants the Cabinet the authority to amend the rates as per the country’s needs,” said Finance Minister Wagle.

Citing past examples, the finance minister recalled that infrastructure fees were reduced during times of oil price hikes to provide relief to the general public. He asserted that such policy-level discussions and decisions are fully transparent and institutionalized. Additionally, acknowledging some technical errors during the printing of the bill to implement the government’s financial proposals, Finance Minister Wagle stated that these errors have been corrected and members of the federal Parliament have been informed accordingly.