Self-compliance in tax must
KATHMANDU, NOV 23:
The Finance Ministry, today, said that a high level of self-compliance among the public is a must for sustainable revenue mobilisation.
The ministry will bring a policy that will encourage self-compliance, said secretary at the ministry Shanta Raj Subedi at a function organised to conclude the Tax Week in Kathmandu.
Tax compliance in Nepal is still very low but the trend of coming under the tax net is increasing these days, finance secretary Subedi said.
Under-invoicing is still a big threat to revenue mobilisation, he said. “Leakages can be controlled if every end-consumer asks for a bill every time they make a purchase.” Subedi also urged tax officials to carry out their duties in a more transparent and responsible manner.
Director general at the Inland Revenue Department (IRD) Tanka Mani Sharma said that the five-year strategic paper and three-year action plan developed by the department will help it reform the revenue sector.
Reform is necessary at every policy level, administrative function, and in the execution of policy and programmes, Sharma said, adding that a collective effort from both taxpayers and the tax administration can help reform the overall revenue sector.
The provision of compulsory registration either at VAT or PAN for new companies will help reduce tax evasion and avoidance, he said. The government should also emphasise on the mobilisation of non-tax revenue, Sharma added.
Concluding the Tax Week, IRD also felicitated 66 taxpayers from across the country. Of the total felicitated taxpayers, 16 were from Kathmandu valley. While felicitating taxpayers, finance secretary Subedi asked them to help the government with tax awareness programmes.
Meanwhile, IRD has said that it has succeeded in surpassing its revenue target by around Rs two billion in the fourth month of the current fiscal year (mid-October to mid-November).
The IRD has collected around Rs 27 billion revenue against its target of Rs 25 billion, said Sharma.
Source: THT
