The government considers the VDIS its smartest move to increase revenue, but it may turn out to be economic suicide for Nepal. It may serve the short-term cash flow need, but in the long term it will not solve the problem of bringing the richest within the tax bracket. Due to their higher access and connections, the richest people have already transferred their money to safer havens. The frequent warnings of the deadline just served to accelerate this process.

Then, people who earned money through unexplainable means will get away with paying 10 percent of what they say they have earned. It will only help them legalise ill-gotten wealth. The only people who resorted to this scheme are either the conscientious middle classes, or those who have some money, but are not rich enough to transfer it to other countries. The money collected from such groups will not be substantial enough to meet government's real need. The psychological effect of dire warnings of confiscation of property will bring in limited money and discourage further investment. This is a sadistic strategy that will alienate the people.

Rajeeb L Satyal
Baluwatar