Don’t pardon VAT evaders, PAC directs MoF
KATHMANDU, JUN 18 -
The Parliament’s Public Accounts Committee on Friday directed the Ministry of Finance (MoF) not to pardon businessmen convicted in the fake Value Added Tax (VAT) bills receipt episode through the new budget.
At a meeting with the officials of the ministry and the Inland Revenue Department (IRD) here on Friday, the PAC also asked the ministry to move forward with the investigation without any fear.
Saying that the ministry is planning to pardon the VAT evaders by wrapping up the probe by mid-July, Nepali Congress Lawmaker Dip Kumar Upadhaya said the country is in favour of a stern action against VAT evaders. “If someone tries to influence the investigation, inform us,” said Upadhaya.
Lawmaker Rabindra Adhikari expressed satisfaction over the IRD probe and urged not to be influenced by any sort of fear or greed.
Finance Secretary Krishna Hari Banskota expressed commitment that no provisions will be included in the budget that would award pardon to VAT evaders. “VAT evaders won’t get relief as long as I am the finance secretary.”
The department, which initiated the probe from the second week of December, has so far completed investigation of 101 companies. The IRD has decided to slap a penalty of Rs 2.39 billion to these companies. According to Banskota, the IRD has aimed at completing the investigation of an additional 100 companies by mid-July.
The IRD has brought 501 companies under its scanner. It has formed three teams headed by deputy director generals to monitor the probe being carried out by Inland Revenue Offices. Banskota said a committee headed by the director general of the Customs Department has started work to take action against customs officials involved in fake import case.
Some entrepreneurs had misused the government’s VAT refund provision. As per the provision, VAT paid by an individual while importing or purchasing raw materials is refunded after the export of goods manufactured from those raw materials. Some businessmen were found to have produced forged bills for imported raw materials and customs clearance documents on exports and siphoned off huge amounts of money from the government treasury.
Lawmakers also expressed dissatisfaction over the legal provision that bars making public the names of VAT evaders. Lawmaker Dhanraj Gurung said the provision should be amended.
Source: Kantipur
The Parliament’s Public Accounts Committee on Friday directed the Ministry of Finance (MoF) not to pardon businessmen convicted in the fake Value Added Tax (VAT) bills receipt episode through the new budget.
At a meeting with the officials of the ministry and the Inland Revenue Department (IRD) here on Friday, the PAC also asked the ministry to move forward with the investigation without any fear.
Saying that the ministry is planning to pardon the VAT evaders by wrapping up the probe by mid-July, Nepali Congress Lawmaker Dip Kumar Upadhaya said the country is in favour of a stern action against VAT evaders. “If someone tries to influence the investigation, inform us,” said Upadhaya.
Lawmaker Rabindra Adhikari expressed satisfaction over the IRD probe and urged not to be influenced by any sort of fear or greed.
Finance Secretary Krishna Hari Banskota expressed commitment that no provisions will be included in the budget that would award pardon to VAT evaders. “VAT evaders won’t get relief as long as I am the finance secretary.”
The department, which initiated the probe from the second week of December, has so far completed investigation of 101 companies. The IRD has decided to slap a penalty of Rs 2.39 billion to these companies. According to Banskota, the IRD has aimed at completing the investigation of an additional 100 companies by mid-July.
The IRD has brought 501 companies under its scanner. It has formed three teams headed by deputy director generals to monitor the probe being carried out by Inland Revenue Offices. Banskota said a committee headed by the director general of the Customs Department has started work to take action against customs officials involved in fake import case.
Some entrepreneurs had misused the government’s VAT refund provision. As per the provision, VAT paid by an individual while importing or purchasing raw materials is refunded after the export of goods manufactured from those raw materials. Some businessmen were found to have produced forged bills for imported raw materials and customs clearance documents on exports and siphoned off huge amounts of money from the government treasury.
Lawmakers also expressed dissatisfaction over the legal provision that bars making public the names of VAT evaders. Lawmaker Dhanraj Gurung said the provision should be amended.
Source: Kantipur
