Dhangadhi: Sudurpaschim province passes ordinance to end budget vacuum

In a significant development for the Far West region, the Council of Ministers of Sudurpaschim Province has passed the "Sudurpaschim Occasional Tax Collection Ordinance 2081," effectively ending a period of budget vacuum.

The ordinance, passed in a cabinet meeting held this morning, has been forwarded to the provincial head for verification. Provincial Chief Nazir Mia is set to certify the ordinance and publish it in the gazette today.

Once verified by the head of the province, the ordinance will hold the force of law, allowing the resumption of tax collection that had been halted across the region. The financial impasse began when the budget, presented in the Provincial Parliament on June 1, failed to pass following the fall of the government led by former Chief Minister Ghil Bahadur Sodari, who lost his majority.

This led to a state of budget vacuum from the start of the new fiscal year, disrupting various state functions, including tax collection. Local-level tax collections, such as transportation tax, written pass tax, and entertainment tax, had been suspended during this period. The new ordinance reintroduces the tax rates from the previous financial year, as the budget amendments proposed this year were not passed.

According to the Ministry of Economic Affairs, while there were plans to revise the transport tax in the new budget, these changes have been deferred, and the old tax rates will remain in effect under the ordinance.

This move is expected to stabilize the region's financial operations and ensure the continuation of essential services across Sudurpaschim Province.