Industrialists call for improvement in taxation system

BIRGUNJ, Dec 29:

Industrialists and businessmen of Birgunj have called for improvement in taxation system, stating that the existing system was impractical for them.

They have suggested to the High Level Tax System Review Commission (HLTSRC) to make taxation system simple and scientific.

Speaking at a consultation meeting organized jointly by the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) and Birgunj Chamber of Commerce and Industries (BICCI) on Friday, industrialists and businessmen made suggestions on areas of improvements in income tax, value added tax (VAT) and customs duty, among others.

Speaking at the program, Ashok Kumar Temani, executive committee member of FNCCI, suggested to the government to adopt multi rates system for VAT. "VAT exemption on some products can help in import substitution. The government should also introduce multiple VAT rates after conducing necessary study," he added.

Likewise, Pradeep Kedia, senior vice president of BCCI, said customs clearance process should be made simple. He also underlined the need to improve customs clearing process at the Birgunj Customs and dry port, saying that the mismanagement of trading points has made negative impact on import and export business.

BCCI Vice President Subodh Gupta said the government should work to widen tax net rather than increasing tax rates. Arguing that provision of penalty on income tax was impractical, he said a technical problem should not be treated like intentional evasion of tax.

Also speaking at the program, BCCI President Ashok Kumar Baidya said taxation system should encourage voluntary participation of people and that it should be investor-friendly. He said the government should end double taxation on a single product.

HLTSRC Chairman Rup Khadka said that the commission will make suggestions to the government on taxation system under federal setup.

Source: myrepublica