Conflict hits revenue collection

KATHMANDU, SEP 14: 

A conflict in jurisdiction among different government agencies responsible for controlling revenue fraud has hit the government’s plan to control under-invoicing of goods, a source at the Finance Ministry said. 

Almost every importer –– ranging from multimedia projectors to home appliances and other essential commodities –– admits under-invoicing is rampant in the country, but no government agency has succeeded in controlling it, he added.

The Department of Customs, Department of Revenue Investigation (DRI), and Inland Revenue Department (IRD) are themselves involved in a dispute regarding the control of revenue fraud at customs points, he revealed, adding that the ministry itself has also failed to resolve the dispute among these agencies. 

“It is the primary duty of Inland Revenue Department to control revenue fraud at customs points,” said an official at the Department of Customs. “Department of Revenue Investigation should put its effort in controlling commercial fraud including non-registration of firms, differences in real transaction and premium.”

Both IRD and DRI have been carrying out similar types of activities creating confusion in jurisdiction, the customs official said.

However, the DRI has said that the Department of Customs cannot escape from its liability of controlling under-invoicing at the customs points. Under-invoicing is rampant, said deputy director general of DRI Rajendra Sharma Laudari.

Source: THT