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'No dual tax system in a federal Nepal'



LALITPUR: Experts on federalism have suggested that the dual tax system should not be adopted for economic reforms in a federal Nepal, RSS reported on Monday.

Speaking in the interaction program titled ´Federalism: Some Issues´ organized as the 63rd edition of the Dr. Harka Gurung Lecture Series, the experts on federalism pointed out that dispute might arise between the centre and provinces if clear provisions are not made regarding which bodies are to collect taxes after the country goes federal.

Sanjaya Sherchan, an expert on federal matters, stressed on adopting the mixed market model in federalism. He said federalism will not work if the dual tax system was adopted. Sherchan is the author of the book The Federal Experience- Nepal and the World.

Sociologist Dr. Krishna Bhattachan said that which body collects the tax in a federal country depended on consensus between the provinces and the centre.

Reader at Tribhuvan University (TU), Balkrishna Mabuhang gave the example of Pakistan in this context. He said Pakistan cannot be termed a federal country because according to him the Pakistani economy was run by the army bureaucracy.

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