Finance Ministry updating Income Tax manual
KATHMANDU:
Finance Ministry is updating current Income Tax Manual aiming at broadening tax bases.
“Inland Revenue Department is working on it,” finance secretary Krishna Hari Baskota said, adding that the ministry will complete the updating process within three months.
Finance Minister Bharat Mohan Adhikari had pledged to update Income Tax manual in the budget for the current fiscal year 2011-12 presented on July 15.
“In addition to timely updating of the current Income Tax manual, manuals for excise duty and value added tax (VAT) will also be implemented after completing their preparation,” according to budget.
The manual describes the Income Tax Act and Regulation in a simple language for ordinary people to understand.
It will make tax collection easier,” Baskota said, adding that without every tax payer understanding the Act and other provisions it will be difficult for the department to collect the tax.
The manual will help ordinary people understand the existing regulation and ultimately expand tax base.
The manual help to reduce misunderstanding and different interpretation of Income Tax Act among taxpayers, Chartered Accountants and tax administration, according to the ministry.
Earlier, the ministry had introduced Income Tax Manual in April, 2010. “The ministry will update that manual according to the need of the hour,” according to finance ministry.
The government in the recent years has adopted the approach of expanding tax bases instead of raising tax rate. It has been expanding the area to mobilise more revenue, though it failed to meet the revenue mobilisation in the last fiscal year.
Meanwhile, Finance Ministry said that the separate Excise Department — as promised by the budget — is not going to be established anytime sooner.
“It takes time to create a separate department,” joint secretary Shanta Raj Subedi said, informing that the ministry has to finalise organisational structure along with other details before establishing it.
The government has planned to expand the contribution of excise duty in revenue mobilisation by increasing its base. “A separate Excise Department will be established in the next fiscal year in order to increase revenue collection through a separate organisational structure,” the finance minister Bharat Mohan Adhikari said in his budget speech for the current fiscal year 2011-12.
However, the ministry cannot implement the budget’s pledge immediately, according to a source at the ministry.
“The government should create independent Revenue Board first,” he said, adding that the government promises more and delivers less as usual.
Source: THT
Finance Ministry is updating current Income Tax Manual aiming at broadening tax bases.
“Inland Revenue Department is working on it,” finance secretary Krishna Hari Baskota said, adding that the ministry will complete the updating process within three months.
Finance Minister Bharat Mohan Adhikari had pledged to update Income Tax manual in the budget for the current fiscal year 2011-12 presented on July 15.
“In addition to timely updating of the current Income Tax manual, manuals for excise duty and value added tax (VAT) will also be implemented after completing their preparation,” according to budget.
The manual describes the Income Tax Act and Regulation in a simple language for ordinary people to understand.
It will make tax collection easier,” Baskota said, adding that without every tax payer understanding the Act and other provisions it will be difficult for the department to collect the tax.
The manual will help ordinary people understand the existing regulation and ultimately expand tax base.
The manual help to reduce misunderstanding and different interpretation of Income Tax Act among taxpayers, Chartered Accountants and tax administration, according to the ministry.
Earlier, the ministry had introduced Income Tax Manual in April, 2010. “The ministry will update that manual according to the need of the hour,” according to finance ministry.
The government in the recent years has adopted the approach of expanding tax bases instead of raising tax rate. It has been expanding the area to mobilise more revenue, though it failed to meet the revenue mobilisation in the last fiscal year.
Meanwhile, Finance Ministry said that the separate Excise Department — as promised by the budget — is not going to be established anytime sooner.
“It takes time to create a separate department,” joint secretary Shanta Raj Subedi said, informing that the ministry has to finalise organisational structure along with other details before establishing it.
The government has planned to expand the contribution of excise duty in revenue mobilisation by increasing its base. “A separate Excise Department will be established in the next fiscal year in order to increase revenue collection through a separate organisational structure,” the finance minister Bharat Mohan Adhikari said in his budget speech for the current fiscal year 2011-12.
However, the ministry cannot implement the budget’s pledge immediately, according to a source at the ministry.
“The government should create independent Revenue Board first,” he said, adding that the government promises more and delivers less as usual.
Source: THT
