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The government on Thursday formed a high-level probe panel under former auditor-general Tanka Mani Sharma to investigate the suspicious Ncell share purchase deal. 

Phanindra Gautam, Baburam Bhandari, Hrydesh Shakya and Sujan Kumar Kafle are members of the panel. According to government spokesperson and Minister for Communication and Information Technology Rekha Sharma, the panel has been instructed to submit its report within a month after a thorough study of the matter. 

Amid reports about the controversial transaction came to the fore, the finance committee of the parliament on Wednesday urged the government to take measures to intervene in the ongoing share purchase deal. The government’s decision follows a series of meetings among the top leaders of the ruling coalition.  

Meanwhile, Ncell has said that the pricing and structure of the transaction was determined through a willing buyer and seller basis. As per the agreed deal structure, Axiata is set to receive a base payment, along with additional benefits in the form of profit-sharing for the next five years, extending until 2029, Ncell said in a statement.

Meanwhile, Appellate Court Patan has issued an interim order to halt the purchase of Ncell shares. A single bench of justice Purushttom Dhakal has also instructed the government to submit all details, including the shared details.

Tax collection was encouraging in the past two decades after the government adopted the Tax Reforms Policy in the 1990s.  In recent years, however, revenue has consistently fallen short of the set targets. Deviations in tax administration, economic sector challenges, and changes in the leadership of revenue administration are some of the factors that have contributed to the decline in tax collection.

According to the Financial Comptroller General's Office, the government has only achieved 22 percent progress in revenue mobilization in the first five and a half months of the current fiscal year. The government has set a target to raise Rs 1,472bn in the fiscal year 2023/24. The slow pace of revenue collection indicates that the government is likely to miss its targets for the current fiscal year. In the fiscal year 2022/23, the government achieved only 68.21 percent progress in revenue collection, raising only Rs 957bn out of the targeted Rs 1,403bn. This is the lowest collection in the past five years in terms of revenue targets.

In previous years, the government consistently raised revenue equivalent to 20 percent of its GDP. This rate, however, plummeted drastically in the previous fiscal year.

The Covid-19 pandemic, coupled with import restrictions and the Ukraine war, significantly slowed revenue growth. As a result, revenue collection is now well below the level of recurrent expenditure. This has had adverse effects on revenue and resulted in excessive dependence on imports. Economist Dr. Dilliraj Khanal commented that there has been a lack of concrete efforts to control recurrent expenses or expand the revenue base.

 "Apart from some initiatives to bring about changes in tax policy at the global level, no such measures have been taken in Nepal so far," he said. Dr. Khanal added that the tax revisions in the current budget have given negative protection to vital industries. “As a result, it is estimated that there has been some impact on the revenue.” 

In 2021, the World Bank said that Nepal had the highest tax-to-GDP ratio in South Asia. During the year, Nepal’s tax-to-GDP ratio was 17.5 percent, compared to 13 percent of Bhutan, 12 percent of  India, 9.1 percent each of the Maldives and Pakistan, and 7.6 percent of Bangladesh—the lowest in South Asia.

The tax-to-GDP ratio reflects a country's ability to provide public services, infrastructure, and meet mandatory obligations. A high tax-to-GDP ratio indicates a heavier burden on taxpayers and suggests adequate public infrastructure in the country. Tax-to-GDP ratio is lower in countries relying on their own income.

In its recent Nepal Development Update, the World Bank has proposed various measures to increase revenue in Nepal. These measures include expanding the scope of taxation, plugging loopholes, and reducing special exemptions and concessional rates of existing taxes. The World Bank also recommended prioritizing businesses in the formal sector, stating that revenue is adversely affected by large informal economies.

During a panel discussion organized during the launch of the update, Dr. Ramesh Chandra Paudel, a member of the National Planning Commission, highlighted that Nepal has failed to align its school education with productivity. He emphasized the need to remodel the education system, giving emphasis to technical and vocational education, stating, "We are preparing manpower only for Europe and the Gulf countries."

The impact of structural changes in the global tax system has also affected Nepal's revenue system, as outlined in a report submitted by the Revenue Advisory Committee last year. According to the report, there is a gradual shift from tax revenue based on imports to internal revenue. The share of customs duty in total revenue was 31 percent in the fiscal year 2002/03, but it declined to 23 percent in the fiscal year 2020/21. In the fiscal year 2020/21, income tax, customs duty, and excise duty have emerged as the primary sources of revenue after VAT, the report states.

While Value Added Tax (VAT) has become the largest source of revenue, its share in total revenue has not experienced a significant increase. Following the implementation of federalism in Nepal, the collection of vehicle tax, real estate registration tax, and house rent tax has been decentralized to subnational governments. This has also brought some changes in the overall tax structure.

The committee also recommended the introduction of a revenue policy so that Nepal, an import-oriented and revenue-dependent economy, can promote domestic industry, ensure productive investment, and encourage exports.

Economist Dr. Khanal  said major reforms are needed in the tax system to concurrently mobilize resources at all three levels and address the expanding resource gap. He argued that such reforms would broaden the scope of taxation, curtail tax leakage and evasion, and augment the proportion of direct taxes, introducing progressivity to the tax system.

He further proposed the implementation of a nationwide equity funding formula explicitly designed to combat discrimination and fortify the equity dimension in development, presenting a viable option for enhancing resource allocation decisions. “The huge socio-economic development gap in the provinces also justifies the need for such a formula,” he added.

In 2015, the High-Level Tax System Review Commission underlined the need to modernize Nepal's taxation system, making it practical and aligned with international standards. Based on principles and international good practice, it suggested that the federal government collect customs duties, value-added tax, excise duty, corporate income tax, personal income tax, natural resource tax, social security tax, forest production fee, and carbon tax. It proposed granting provincial and local governments the authority to collect taxes under 29 different headings. The recommendations of the commission have yet to come into implementation.

The verdict delivered by the Rukum West District Court in the Navaraj BK murder case has rekindled public faith in the judiciary. The esteemed court handed down life sentences to 24 individuals involved in the lynching of six youths, including Navaraj BK, in Chaurjahari Municipality-8, Rukum West three years ago.

Why were Navaraj and his friends killed?

The root cause of this tragic incident was caste, as confirmed by the district court’s verdict. Navaraj, a young man from Ranagaon in Bheri Municipality-4 of Jajarkot, was in a relationship with a non-Dalit Malla girl from Rukum West. Both were happy in their relationship and wanted to get married.

 On May 23, 2020, Navaraj and his friends reached the girl’s village in Soti to escort her to his home for the marriage ceremony. Despite the shared happiness of the involved couples and their desire for marriage, the caste divide shattered their dreams. 

A mob from the non-Dalit community in Soti village violently attacked Navaraj and his friends, resulting in six deaths and injuring 12 others. The bodies were discovered along the banks of the Bheri River after a long search. Along with Navaraj, his friends Sandeep Bishwakarma, Tikaram Sunar, Ganesh Budha, Lokendra Sunar and Govinda Shahi were killed in the incident.

Caste discrimination remains a pressing issue in Nepal, with Dalits enduring centuries of oppression and violence solely based on their caste. Navaraj’s case is just a representative case. Sayte Damai of Dailekh was murdered by non-Dalit people just because he married a non-Dalit girl. There are many such incidents of discrimination against Dalits. Many reports of INGOs, NGOs and even government offices show Dalits face discrimination in various aspects of life, including access to public spaces, places of worship, and relationships.

 A few Dalits muster the courage to pursue legal action in cases of caste discrimination, while the majority remain unheard and suppressed. Local leaders and influential figures often try to settle caste discrimination cases locally.

 Non-Dalits caution victims against speaking out, creating an environment of intimidation. Instead of aiding the marginalized majority, whether educated or not, there is a tendency to threaten those who attempt to raise their voice against discrimination. In such a challenging context and prevailing social norms, how can a Dalit hope to attain justice in a case of caste discrimination?

The caste system has persistently denied justice to Dalits throughout history, manifesting in loss of life, property, and enduring inhumane treatment. Despite constitutional provisions such as Articles 17, 18, 24, and 40 explicitly advocating for equality, human rights, and freedom, the prevalence of caste conflicts persists among non-Dalits who disregard these laws.

While there are ongoing caste discrimination cases in the courts, Dalits rarely find justice in such matters. Deepa Nepali’s case in Kailali, where she faced eviction from a rented room based on her caste, exemplifies the challenges encountered by those seeking legal redress. Despite initial threats, Deepa, a university student, courageously pursued legal action. Unfortunately, the verdicts from the Kathmandu District Court and Patan High Court were not in her favor. There are many examples of systemic challenges faced by Dalits in securing justice.

Landmark verdict

The history of Dalit justice has not been favorable, with the caste system often overshadowing legal proceedings. In this instance, however, the Rukum West District Court has demonstrated a commitment to breaking this pattern. This landmark verdict is not only a victory for the grieving families of the victims but also a triumph for the entire Dalit community. This groundbreaking decision sets a legal precedent that may pave the way for justice in future caste-related cases. The court's acknowledgment of the caste-based motivations behind the violence sends a powerful message that justice can prevail even in the face of deeply entrenched discrimination.

The caste system, inherently discriminatory and illegal, stands against the principles of humanity and the law. It perpetuates division, imposing arbitrary rules and restrictions. It is imperative for Nepali society to reconsider its stance on this inhumane system. Without a collective effort to eradicate caste-based discrimination, incidents like the Rukum massacre may continue to plague our society. Authorities, civil society, and the public must unite to eliminate this systemic injustice from our midst.

On a chilly November afternoon, some 3,700 meters above the sea level, Prasana Pariyar was sitting in an open field, imagining a snow leopard appearing on a cliff of rugged Himalayan terrain in Mustang district.

As the eighth grader from Dhaulagiri Boarding School focused her mind trying to conjure up the form of a snow leopard in her head, four other girls were recalling the stories that their parents and grandparents had told them about how snow leopards used to enter their villages and attack livestock.

“I have heard many stories about snow leopards. I also studied about snow leopards as part of conservation education at school. Now, I am trying to craft a story from everything I know,” said Pariyar.

Meanwhile, some of the students were being instructed by artist Rajman Maharjan to paint a snow leopard. Kristina Thakali, who goes to Janahit Secondary School, was one of them. 

“There were two options, story writing or drawing, and I chose drawing. I am excited to draw the queen of mountains,” said Thakali. Through her art, she was trying to reflect the significance of conserving the snow leopard and its ecosystem.

Under the IUCN Red List of Threatened Species, the snow leopard is listed as ‘Vulnerable.’ It is estimated that there are 300-500 snow leopards in Nepal’s high mountains. Nepal has the fourth largest population of these elusive cats after China, Mongolia and India.

Pariyar and Thakali were joined by 10 students from six government schools of Mustang, who spent two days in the field together as part of the Snow Leopard Scout’s Monitoring Camp under the theme “Love the Snow Leopard, Protect the Balance of Nature”. They were accompanied by their teachers.

The scout camp was organized by Teka Samuha Nepal with the technical and financial assistance from Snow Leopard Conservancy. According to Anil Adhikari, founder and executive director of the organization, the field trip was organized to spread awareness among children about the importance of snow leopard conservation.

“The camp serves as a practical session to the students to observe and understand the prey and habitat of the snow leopard. These students had enrolled in the Snow-Leopard-based Conservation Education Book 1 & 2, implemented in Mustang and Taplejung districts,” said Adhikari. 

Since there has been no recent study on population status of snow leopards in Mustang, Adhikari underscored the need of conducting surveys on snow leopards and their prey species.

Teka has been working closely with the Department of National Parks and Wildlife Conservation, National Trust for Nature Conservation and Annapurna Conservation Area Project to execute these camps. So far, five residential camps comprising students, teachers, scientists, rangers and experts have been carried out in Mustang.

A similar camp was conducted in Taplejung district to enrich students’ understanding of snow leopards, their prey, habitat, conversation, and their correlation with local inhabitants.

In Mustang’s Muktinath area, the students not just presented their stories and drawings, but also learnt about camping and camera-trapping technology for snow leopards. They hiked up to nearly 4,000 meters above the sea level, towards the base of Thorong La Pass, and spent hours learning GPS monitoring and methods of camera-trapping.

“This unique approach of training students about the protected species and the use of technology is really exciting and valuable,” said one of the participating teachers. 

The students were provided practical lessons by the citizen scientist Ramesh BK, a local of Mustang, who has been working in the scout camps since 2012.

“The locals are well aware of the habitat, movement and activities of the snow leopard, including scrape and pug marks. The local and indigenous knowledge is important for conservation,” he said.

BK has a personal experience of capturing snow leopards with the use of camera traps. He had captured at least four snow leopards at Namu hill in Mustang, which he regards as a great achievement of his career. He wants to pursue similar monitoring activities in his locality but lacks funding and technical support. 

“I would even volunteer for camera trapping, provided the availability of cameras and other gear, but I feel there is lack of seriousness from the government side,” he said.

As per reports, though Nepal has a good number of snow leopards, there is a lack of monitoring programs and genetic tools to estimate the real number and the threat status. 

In the second week of November, snow leopards had killed over 80 mountain goats in a single shed in Mustang, causing a loss worth over Rs 3m. Such attacks have become more frequent in recent years.

Rinzin Namgyal Gurung, chairman of the Varagung Muktichhetra Rural Municipality, said there is a need for minimizing human-wildlife conflict and attacks on livestock through awareness campaigns and developing local capacity. 

“Snow leopards attacking the local livestock has become common, but there are problems when it comes to compensating the livestock owners. It’s a bitter fact that the mountain region doesn’t get much attention in terms of compensation scheme as compared to the Tarai region. We are trying to raise the issue with the authorities,” said Gurung.