Building a tax system for trust, investment and prosperity

People are more willing to pay taxes when public resources are managed effectively and transparently.

The 2026-27 fiscal budget deserves appreciation for one important reason. Amid competing fiscal pressures and slowing economic activity, it has committed to launching a second generation of tax reforms. The timing could not be more appropriate. Nepal’s tax system has reached a stage where incremental changes are no longer sufficient. What is now required is a comprehensive reform agenda that restores public trust, promotes investment, broadens the tax base, and prepares the country for a rapidly changing economy.