Deputy Prime Minister and Finance Minister Bishnu Prasad Paudel has explained that Nepal is on the gray list of the Financial Action Task Force (FATF) in the matter of money laundering and to get out of it, luxury tax has to be imposed on gold and silver jewelry.

Answering the questions raised on the Appropriation Bill, 2082 in the National Assembly, Finance Minister Paudel clarified that this provision was made because it was necessary to make the buying and selling of gold and silver and jewelery transparent. The government has decided to impose luxury tax on the purchase of all types of jewelery and gold and silver through the budget of the next financial year.

'Even earlier, there was a provision of two percent luxury tax on transactions above ten lakh rupees, now the threshold has been removed,' Finance Minister Paudel said, 'We want to get out of FATF's intensive monitoring list. For that, it was necessary for the gold transaction to be transparent. The luxury tax has been imposed with the aim of ensuring purity in the transaction of goods like gold and not investing the proceeds of money laundering there.'

He expressed the belief that the gold and silver businessmen are protesting against the luxury tax, and discussions are being held with them and a meaningful conclusion will be reached soon.

Similarly, claiming that the next year's budget is feasible, Finance Minister Poudel said that a realistic analysis of internal revenue, loans and grants has been done to ensure resources. He argued that the deficit budget is necessary to fulfill the aspirations of development and prosperity, and said that the policy of spending loans in the areas of capital formation has been adopted.

'Revenue is the main source of budget proposal, it is realistically estimated. The analysis of internal and external loans and subsidies is also based on reality,' said Paudel, 'the government is aware that the scope of loans should not be unlimited and the government should not be able to afford it. Loans will be spent on increasing production and productivity.'

He also informed that budget resources have been proposed within the internal debt limits set by the National Natural Resources and Finance Commission. He also said that he is optimistic that the revenue target will be achieved through the expansion of the tax range, the policy of keeping the tax rate stable, leakage control and the use of technology.

Finance Minister Poudel said that the budget was not made in a procedural manner, but justice, prudence, necessity and propriety were considered while making the budget. No power, reach, faction or sub-faction is observed. Efforts have been made to maintain geographical balance.'

According to him, the budget has been brought to quickly complete national priority projects, connect citizens with production, employment and social security and promote entrepreneurship. He also said that there is sufficient participation of parliamentarians in the preparation of the budget.

'The budget has been given due importance by including the suggestions that came to the House on policies and programs and principles,' Paudel said, 'On this basis, the parliamentarians have participated in an advanced manner. The budget is realistic rather than ritualistic.'