It is natural to expect that a government formed with the sensitive mandate of holding elections to institutionalize the changes demanded by the Gen-G movement and the sacrifices of the youth generation will not be embroiled in unnecessary controversies. The current government, which is responsible for making the House of Representatives elections scheduled for 21 Falgun a success, risks getting embroiled in controversial decisions.

The controversial decision to grant income tax exemption to Dolma Impact Fund, which brought investment to Nepal through ‘tax haven country’ Mauritius, is the latest reference. Nepal is eager for foreign direct investment (FDI). The belief that foreign investment creates jobs for citizens and ensures revenue for the state has increased its attraction towards it.

Any country provides its resources and markets for employment and revenue. However, if it seeks to get exemption from revenue, foreign investment will be fundamentally counterproductive. By deciding to exempt Dolma from the general obligation to pay tax on income earned by investing in Nepal, the government has raised questions on its own moral ground.

For this, a controversial interpretation of the treaty with Mauritius has also been used. However, government officials were not ready to grant tax exemption by interpreting the treaty in a way that would exempt employees from paying tax on income. The government should back down from such a decision that will put employees in legal trouble in the future, tarnish the image of the government, and mislead them from its original objective.

When Sushila Karki was appointed Prime Minister on 27 Bhadra after the Gen-G movement, President Ram Chandra Poudel had given her the clear task of holding elections. After joining the government, the entire Council of Ministers or individual ministers may feel like a regular government. However, what is clear is that the parliament, which scrutinizes the government's decisions, has been dissolved.

The election is being held for the purpose of choosing people's representatives. Therefore, the government should not take risks in making big decisions and policy decisions that are not related to the election apart from daily work. Some time ago, the government has already found itself in a controversy after deciding to recall ambassadors from 11 countries. Even the Supreme Court has ordered not to implement such a decision. But the government does not seem to have learned from the ambassador case. If it had learned the lesson from the criticism at that time, perhaps the government could have avoided the decision to exempt dolma from tax. 

A government elected by the people can make decisions that will have a long-term policy impact and redefine the country's income and expenditure system. An interim government cannot be in a hurry for that. There had been 'lobbying' to exempt dolma from tax before. However, previous governments, mired in corruption, were also hesitant to make this decision.

It is not easy to give tax exemption to Dolma by flatly interpreting the treaty with Mauritius. Because, according to the Income Tax Act 2058, as per international treaties and agreements, the investment of the concerned country in such a company in Nepal should be at least 50 percent. This provision is clearly written in Sub-section 5 (b) of Section 73 of the Act. However, Mauritius' investment in Dolma Management, which is registered with an office in Cyber ​​City, Mayawa Tower, Mauritius, is only 0.75 percent.

99.25 percent of the investment was taken from various countries to the company in Mauritius and brought to Nepal. But if Dolma, which has invested in various companies in Nepal, gets tax exemption on the income earned here, it will be a direct violation of Nepal's laws. This will become a legal, political and social issue.

Dolma has launched Worldlink, Century Masala, Sasto Deal, Foodmandu, Cloud in Nepal It has invested in Factory Holdings, Fusion Machines, Upaya City Cargo. Similarly, Dolma also has investments in Setikhola Hydropower, Shwet Ganga Hydropower and Construction, Makar Jitumaya Suri Hydropower, Solar Farm, National Path Labs, Nidan Hospital, Chirayu Hospital, Rhododendron Biotech Pvt. Ltd.

Dolma, which has been in losses in some companies, has made good profits from hydropower projects. Paying taxes when there is income is a basic principle. In the past, the issue of double taxation of Ncell had also reached the international court. But according to the decision of the Supreme Court of Nepal and the International Tribunal in The Hague, Ncell's tax was fixed.

Companies are opened in 'tax haven' countries like Mauritius, Panama, British Virgin Islands, Cayman Islands where the source cannot be traced and investments are made in countries like Nepal with weak monitoring by finding legal loopholes. However, the tendency to not pay taxes even on the amount earned here should be discouraged legally, administratively, socially and politically. Any government that does not fulfill that responsibility should be criticized.