FinMini asks IROs to expand tax base

KATHMANDU,JUNE 4: 

Finance Ministry has directed the Inland Revenue Office (IRO) to expand the tax base to increase revenue mobilisation.

The Inland Revenue Offices should monitor the current trend of invoices to control revenue leakage, said finance secretary Krishna Hari Baskota, adding that the offices should also take the initiative to bring all professionals under the tax net. 

While inspecting the IROs in Kathmandu, he also emphasised on the need to provide Permanent Account Number (PAN) to professionals to ensure tax collection. Similarly, secretary Baskota also directed tax offices to collect rental tax effectively. “The production of home-made liquor should be controlled,” he further said. 

The offices should try its best to reduce the number of non-filers, clear arrears and manage files in an effective manner, said Baskota, adding that revenue leakage should be controlled through effective monitoring.

During his visit, officials from tax offices informed that they were trying to expand the tax base. “The Inland Revenue Offices have identified new sources of revenue collection,” said chief at Inland Revenue Office area number 1, Kathmandu Ram Sharan Pudasaini, adding that the office will clear all arrears through a legal procedure. 

IROs have started risk-based evaluation which will be useful in reducing arrears in the coming days, he said, adding that the Finance Ministry should expand the role of the Taxpayer Service Office to encourage taxpayers to be self-compliant.

Source: THT