Finance Minister Dr. Swarnim Wagle has said that the government that has received the popular vote will use taxes judiciously.

While answering questions raised by lawmakers on the Finance Bill, 2083 in the House of Representatives meeting on Friday, he also said that the government will arrange a special budget if the parliament directs it.

He also clarified that the government has adopted a policy of utilizing the taxes collected from thousands of places based on the needs.

‘Taxes can be collected from hundreds, thousands of sources. In this way, ‘earmarking’ can also be done so that the taxes collected can be used only for this purpose,’ Wagle said, ‘But with that, administrative and legal complications also come. Next, taxes collected from thousands of places are collected in a single consolidated fund. And, the government that has received the popular vote will use it judiciously.’

‘Another, special budget will also be arranged. The sovereign parliament will direct it,’ he added.

Finance Minister Wagle also said that the government will utilize taxes in a way that does not cause administrative and legal complications. He said that the tax policy has been revised with the aim of bringing the country's economy into the formal sphere and strengthening a liberal economy with social justice.

Clarifying the tax imposed on the education sector, Finance Minister Wagle informed that a 3 percent tax is currently levied on private schools. He also mentioned that the facility of deducting educational expenses up to Rs 25,000 per year from taxable income has been provided to provide relief to middle-class families. He presented the decision to make income up to Rs 1 million per year exempt from income tax as an important reform.

Wagle said, "On the one hand, income tax exemption worth lakhs of rupees has been given, and on the other hand, the class that can spend on expensive private schools has been brought under the tax net. This is part of the progressive tax system."

Discussing the investment and achievements in the energy sector, the Finance Minister said that now a situation has arisen where the electricity sector should also be brought under the tax net. Stating that the private sector contributes about 80 percent to electricity generation, he informed that expansion of production, trade and transmission infrastructure will be encouraged.

Claiming that a policy is being formulated to avoid additional burden on consumers regarding electricity tariffs, he said, "Tax-related issues are being studied only for consumers consuming more than 85 to 150 units of electricity. Huge investment is required in transformer replacement and transmission line expansion to achieve the goal of electrification. Options for tariff adjustment during the rainy season are also being discussed to avoid additional burden on consumers."

Speaking about the fluctuations seen in the capital market, he analyzed that investors are in a "wait and see" state due to investigations into past irregularities. Wagle said, "There may be some fear due to the drastic steps and investigations taken to maintain good governance. However, we are confident that the private sector will be more enthusiastic once the direction of reforms set by the budget and its positive results are seen."