Trade union leaders representing workers delivering essential public services, call on the federal government to move towards a fairer tax system that strengthens critical services such as health care, sanitation and local government. In a two-day meeting held in the capital on September 23 and 24, union representatives discussed the current tax system and its impact on workers and public services. The trade union leaders also urged the government to take steps towards tax exemption, tax reduction for common people and implementation of wealth tax on the rich.

Nepal should establish itself as a progressive, pro-labour country by bringing the making the wealthy pay more taxes and taking necessary steps to reduce tax evasion, said South Asia Sub-Regional Secretary of Public Service International (PSI), Kannan Raman.

Critically assessing Nepal's current tax policies and suggesting potential strategies to boost revenue for public services, Professor Achyut Wagle said that the revenue deficit has increased alarmingly in recent days in Nepal.

"We have to bear double taxation in the current scenario. We have to pay taxes even on social security benefits. People who struggle to afford basic necessities like food are still burdened with healthcare and education expenses. This is against the principle of tax justice" said Yogendra Kunwar, President of National Trade Union Congress (NTUC)/ Joint Trade Union Coordination Centre (JTUCC).

Binod Shrestha, president of General Federation of Nepalese Trade Unions (GEFONT), said, "Trade unions have now reached a situation where they have to increase the scope of their work and improve their financial literacy. Based on good governance and social justice, trade unions must make a case for the distribution of state resources. Who will pay how much tax, and why? This is a serious question today."

President of All Nepal Federation of Trade Unions (ANTUF), Jagat Simkhada said, "If the state strictly monitors the accounts of a handful major corporate houses in Nepal, food can be provided at concessional rates to workers across the country. The state can no longer escape and keep on imposing equal taxes on both workers and owners. This is not how it works.”

The trade union leaders called on the government to take bold steps in reforming the national tax system. The participants of the seminar emphasised that the state should play a responsible role in the livelihood and social security of differently abled citizens. Women, similarly, are unfairly taxed and remain excluded from the social security net.

“Women are expected to work as Community Health Volunteers without receiving even the minimum wage or social security. It’s not fair that billionaires can hide their wealth offshore while we are denied simple wages and security.  Increased tax revenue would allow the government to support us properly,” said Gita Thing Paudel, President, Nepal Health Volunteers Association (NEVA).

It is not justified that the rich hide the illegally accumulated wealth while the workers do not get the minimum wage or even social security. There is a need to work at the global level through UN conventions for a tax justice system. Hence the slogan: Tax the wealth not the worker!

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