Prime Minister KP Sharma Oli has argued that although the local units had authority to impose tax, it should be considered as per the people's capacity to pay.
Addressing the media persons at the Biratnagar Airport Tuesday, PM Oli asserted that Nepal's taxation rate was lowest one among other countries in the world.
He clarified that the recently raised taxes on land and business by all 753 local governments and introduction of a new tax regime for smaller incomes and sources for livelihood aim to generate sources of income for the city and federal units.
The Prime Minister further said that false information should not been disseminated among the people after misinterpreting issues of revenue and tax.
Furthermore, the PM spoke of the need to end the trend of staging protest over any move of the government.