Kathmandu. Former vice-chairman of the National Planning Commission, Shivaraj Adhikari, has said that the policy of high tax rate was necessary to reduce the consumption of harmful goods and improve public health.

Speaking at an event on the public health tax on Sunday, Adhikari made it clear that it is the responsibility of the state to regulate the consumption of goods that cause harm to thesociety in the name of personal freedom.

Adhikari, a former vice president, stressed that the tax on goods that causehealth benefits such as cigarettes and alcohol should not only be seen as a tool to increase revenue, but should also be understood as a powerful means of “behavior change”.“If private consumption creates a public cost, it is not only appropriate but necessary to tax it. “, he said.

According to the official, this type of tax may seem to be a burden on consumers in the short term, but in the long run, it will reduce the cost of health treatment and improve the standard of living of the citizens

.।

On the occasion, Adhikari pointed out some contradictions in the existing tax system and problems in its implementation. Stating that the tax rate has not been able to change the behavior of the consumers as expected, he said, “The current excise duty of 30-32 is not enough to change the behavior.” To reduce harmful consumption, the tax rate needs to be raised to at least 55-60 percent. ’

He said that the emphasis should be on political will and effective implementation rather than hesitation to increase taxes on the threat of illegal trade. He was of the view that if the tax revenue could be invested in the health sector, the people would understand the importance of the tax and the public acceptance of the tax would increase.

Vice-President Adhikari said that the consumption of harmful products was also seriously affecting the productivity of the workplace and it was necessary to reduce such impact.“We must strike a balance between individual freedom and social responsibility through taxation. “Our main goal should be to reduce harmful consumption, which ultimately increases economic productivity,” he said. ’

Vice President Adhikari stressed that the government and stakeholders should work together to build a strong and integrated health tax system by removing policy loopholes and fragmentation in the tax structure.