Pay Commission plans 40-60% raise |
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Also, Ministry of Finance proposes 50-100% sales tax on cars
9 August, 2008 - The Pay Commission is recommending a civil service pay rise of 40-60 percent and the Ministry of Finance (MoF) is proposing a car sales tax of 50-100 percent, Kuensel has found out. According to the Kuensel source, the salary rise system will be a progressive one, in which higher ranked officials get a lower rise while lower ranked ones get a higher one. So higher ranked grades, like at secretary, DG levels will get around a 40 percent hike, mid-level officers will get around 50 percent and the junior most, around 60 percent. The Pay Commission had formed three separate sub committees to look after salary raise, allowances and cost cutting government expenditure. The MoF sales tax, if implemented, would mean that, if your car cost Nu 1.0 million, it will now cost Nu 1.5 million after the 50 percent sales tax. The ministry is also, according to the source, looking into increasing the annual motor vehicles tax for existing cars. It is studying other luxury items like DVDs, TV, LCDs. At the new rate, 4,000 import cars (recent data) would fetch roughly Nu 800 million as additional revenue every year. This figure will be sustainable, provided the import figure remains stable and does not drop or rise. “Our main aim will be revenue generation but other factors like rupee or convertible currency protection, controlling inflation, reducing fuel imports and cutting down congestion of the environment and streets are also factored in,” said a government official.
In the 2008-09 budget, pay and allowances for the 18,000 civil servants will come to about Nu 2.8 billion. So an average 50 percent increase, if it goes through, will mean that government may have to find an additional Nu 1.5 billion for the civil servants’ pay rise. The last hike was in January 2005 with a 45 percent hike in salaries. |







