Private sector demands scrapping of VDIS

A delegation representing various private sector organizations submitted a memorandum to Finance Minister Dr Baburam Bhattarai on Monday demanding that the government nullify its Voluntary Declaration of Income Scheme (VDIS), the deadline of which will expire after 10 days.

Representatives of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), Confederation of Nepalese Industries (CNI) and Nepal Chamber of Commerce (NCC) urged the finance minister to withdraw the VDIS.

The have termed the program as something which is incongruent with the Income Tax Act. Moreover, the entrepreneurs have also asked the government to replace the program with another scheme which will be devised through proper consultation with the Revenue Consultation Committee.

The private sector is reluctant to pay tax under VDIS saying that the government has not been serious in addressing the problems of the sector and the scheme could discourage investment.

However, the government has been saying it is confident that it will meet its target of collecting Rs. 1 billion in revenue through the scheme by February 11. It has also warned that the action will be taken against those who refuse to pay tax within the stipulated period. nepalnews.com Feb 3 09

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