Deputy Prime Minister and Minister for Finance Professor Biman Prasad has clarified that the government will not raise corporate and personal income tax to fund the National Development Plan 2025-2029.
While responding to a question from a USP student if there is a plan by the coalition government to raise corporate and personal income tax to fund the National Development Plan 2025-2029, Professor Prasad says they have increased the corporate tax from 20 to 25 percent, and there is nothing in the agenda to increase it further.
He says they have kept the personal income tax at the same level, which is probably the lowest compared to some other countries.
He adds they do not envision changing that now because they realize that people are still transitioning after COVID-19 in terms of getting a good income.
Professor Prasad says one of the things they said when they came into government is that they are going to be open and transparent in particular with our tax policies.
