Political protection hits revenue
KATHMANDU,FEB 2:
Political protection, loopholes in the laws and delay in verdict by the judicial bodies have been hitting the government’s plan of tightening the public purse.
Inland Revenue Department – the tax authority – has still to settle an outstanding Rs 24 billion revenue dues but most of the taxpayers have moved to the court, a Finance Ministry source said, adding that others are denying the tax authority due to their political connection. Of the total Rs 24 billion revenue dues, the department has to collect Rs 20 billion income and excise and Rs 4 billion Value Added Tax (VAT) and Tax Deducted at Source (TDS).
“The trend of moving the court whenever the tax authority tightens them is on the rise,” the source said.
Some firms are denying to pay tax liabilities even threatening the government that it will send a negative message that government is not creating a conducive environment for the investment, the ministry source revealed.
Despite huge resistance, the Inland Revenue Department has targeted to collect Rs 5 billion dues within the current fiscal year. “The department has collected Rs 1 billion dues during the first half of the current fiscal year,” director general at the department Tanka Mani Sharma said, adding that the department is preparing to take stringent action against those taxpayers who are avoiding tax compliance.
The department is planning to freeze bank accounts, stop transactions and even close entire businesses under Income Tax Act, VAT Act and Excise Act, if they failed to settle their dues within mid-February, he added.
Around 1,000 taxpayers are yet to clear their tax that comes to more than Rs 1 million per taxpayer, Sharma revealed, “The department has also targeted those firms, whose dues exceed Rs 1 million.”
Currently, the country has 600,000 PAN registered and 104,000 VAT registered taxpayers, according to Inland Revenue Department.
Govt to bring brick kilns under VAT net
Finance Ministry formed a committee to settle dispute between brick kilns and the government on VAT liabilities. Joint secretary at the ministry Bogendra Raj Sharma Poudel led committee is mandated to submit report within 15 days, under secretary at the ministry Ganga Prasad Sharma said. There are some 700 brick kilns in the country and most of them are evading VAT, he said, adding that the committee will provide recommendations on how to bring them into VAT net. The government and brick kilns owners are at loggerheads since a month. They have demanded to introduce flat tax rate.
DRI to file case
Department of Revenue Investigation (DRI) is filing case against Global Soft Net claiming Rs 2 billion fine and tax for its involvement in illicit VoIP scam. The department has finalised its tax assessment and will file case against it on Thursday, the department said.
Source: THT
