NT becomes largest institutional tax payer, Rana tops the individual list
KATHMANDU, Nov 16:
State-owned telecom operator Nepal Telecom (NT) became the largest tax payer contributing around nine billion rupees to VAT and Income Tax in the fiscal year 2011/12.
Marking the Second National Tax Day on Saturday, the government felicitated various individuals and firms including NT, recognizing their significant contribution to revenue.
A senior official at the Inland Revenue Department (IRD) disclosed that Ncell, one of leading telecom operators,-- become second largest tax payers. However, the official didn´t disclose the overall revenue collected from Ncell.
The government had recognized firms in different tax categories including income tax, VAT and excise duty. Similarly, Siddharth Rana, executive chairman of Sipradi Trading was felicitated as the highest income tax payer under the individual category.
Speaking at the function held at IRD, Minister for Finance Shankar Prasad Koirala stressed on the need to shift toward sustainable source of tax, enhancing the capacity of tax payers.
“We need to raise awareness among tax payers and expand the tax net simultaneously, creating a situation for them to enhance the financial capacity to pay more tax,” said Koirala.
Koirala also said that plans are afoot for maximum use of information technology to modernize tax administration and facilitate the tax payers.
The governor of Nepal Rastra Bank Dr Yubaraj Khatiwada also said both the economic and monetary policies have given equal importance on raising awareness among tax payers along with increasing revenue.
He, however, cautioned that highly dependence on tax revenue including customs would not support to make the nation rich, and suggested that the government should also focus on non-tax revenue sources.
Finance Secretary Shanta Raj Subedi underlined the need for widening the tax net for increasing revenue.“There must be at least five percent of the population under the tax net for a reasonable collection of revenue in any country. But, statistics shows hardly 3.88 percent or 1.03 million are within the tax bracket in the country,” said Subedi.
Subedi also laid emphasis on the expansion of tax net , compliance of tax laws by tax payers, control of tax leakages, well-trained tax officials and adoption of modern technology.
He claimed that a huge amount of money spent during the ongoing election campaign might not have been covered under existing system and urged the private sector to support the government to deal with the problem.
In an effort to encourage tax payers, since last year, the government has been felicitating tax payers making remarkable contribution on revenue. Also on the occasion, the government has felicitated some professional organizations representing gas dealers, tobacco producers, construction materials, brick producers and the Forum for Protection of Consumer Rights.
Source: Republica
