Kathmandu, May 26 -- Despite collecting more than one and a half dozen different taxes from people and businesses, the Nepal government continues to struggle with widening fiscal deficits and weak revenue growth, raising concerns over the sustainability of the country's public finances.

Ordinary Nepalis, already burdened by rising living costs and shrinking incomes, complain that they are paying increasingly high taxes while receiving poor public services in return. Apart from primary agricultural productions and medicines, most goods and services consumed in Nepal are subject to a 13 percent value added tax, while personal income tax can reach as high as 39 percent.

Nepal imposes one of the highest tax burdens in South Asia, not only i...