 |
| |
VOL. 28, NO. 21, Feb 05, 2009 (Magh 23 2065 B.S.)
|
|
Tug Of War
The private sector gives cold shoulder to the government's scheme to enlarge tax net
By A CORRESPONDENT
A delegation of different private sector bodies including the Federation of Nepalese Chamber of Commerce and Industry (FNCCI), Confederation of Nepalese Industries (CNI) and Nepal Chamber of Commerce (NCC) met with Finance Minister Dr. Baburam Bhattarai on Sunday (February 1) asking him to reconsider the Voluntary Disclosure of Income Scheme (VDIS).
 |
Finance Minister Dr. Bhattarai: Mandatory VDIS |
They have said that the business community will resort to agitation and extend non-cooperation to the scheme.
"We have said that this is no time for schemes like VDIS. We are suffering even in surviving. How can the government expect to squeeze more taxes from beleaguered business community," said Surendra Bir Malakar, president of NCC.
As the initial response to the VDIS has been less than its expectations, the government has also started flexing muscles dropping a hint here and a warning there.
Last week, Secretary at the Ministry of Finance Rameshwor Prasad Khanal said that 40 percent of the total national economy is "black" and warned to take stern action against those citizens who have been concealing their properties.
Khanal said that the government has given an opportunity to voluntarily declare their properties within the deadline of February 11. "The owners of black properties are invisible and the government has been striving to find them out and take action against them," said Khanal.
The finance secretary made it clear that the tax evaders won't be allowed to escape from the government's hand. He even said that the schools that decline to pay five percent tax as stipulated by the government in its annual budget will be barred from appearing in the School Leaving Certificate (SLC) exam. "The students of the schools that do not pay the education service tax won't be allowed to appear take the SLC exams," said Khanal.
The finance secretary said that the government is in a situation to take up strong measures since the prices of essential commodities have not shrunk even as the commodity prices have scaled down by almost half in the international. Saying that prices of foodstuff including rice and oil have not reduced in Nepal despite substantial drop in their prices in the international market, Khanal warned that the government will initiate a drive to take strong action against the businessmen who try to impose syndicate system by declining to decrease prices.
Earlier, there was a report in Kantipur daily quoting officials that the authorities have identified 10,000 taxpayers. It said the Inland Revenue Department (IRD) has identified 10,000 prospective taxpayers under the Voluntary Disclosure of Income Scheme (VDIS).
Authorities have said they compiled the list of such taxpayers by evaluating the purchases of properties, share transactions and vehicle purchases. They have listed 700 people who have engaged in purchases of properties worth over Rs ten million; 400 people who have engaged in share transactions worth over Rs five million and 3000 people who have engaged in purchases of vehicles worth over Rs two million.
IRD director general Kapildev Ghimire has said that the authorities have started keeping an eye on real estate dealers, brick kiln operators, doctors, engineers, consultants, banks and financial officials and so on. "This list could be further long," he added.
The department has also sought information from the central bank about the persons who have received over Rs one million loan from banks. "We are focusing on big loan seekers," said Bishnu Nepal, director of the IRD. The government had urged people to disclose their income under VDIS within mid-February and pay flat ten percent tax. The government aimed to collect Rs 1 billion tax under this scheme. Till now the government has only collected Rs ten million as tax under this scheme.
