Kathmandu, May 21 -- Nepal remains one of the poorest countries in South Asia in terms of per-capita income, with weak public services to show for it - yet its working class pays some of the highest taxes in the region.

The country's personal income tax rate is a whopping 39 percent.

Interestingly, experts say the public perception that high tax rates drive higher revenue is also misplaced.

"Actually, only around Rs 4-5 billion is collected from this high rate," says Sudarshanraj Pandey, a chartered accountant and tax expert.

The government led by the Rastriya Swatantra Party (RSP) is set to bring a budget in less than two weeks. Finance Minister Swarnim Wagle, an economist himself, has been vocal about Nepal's high tax rates.

Since ...