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VOL. 28, NO. 23, March 06, 2009 (Falgun 23 2065)
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VDIS ROW
Debate Rages On
Businessmen are up in arms demanding that the government waive the income already invested from the Voluntary Disclosure of Income Scheme
By A CORRESPONDENT
At the meeting held last week at the Ministry of Finance, businessmen asked Finance Minister Dr. Baburam Bhattarai to waive income already invested from VDIS. However, FM Dr. Baburam Bhattarai replied that the government cannot give such concession.
“We can, however, be somewhat liberal in terms of investment made in productive sectors,” he said.
The government has collected Rs 1.08 billion taxes under VDIS. It has been extended till mid-March as per the request of private sector. But private sector representatives expressed their apprehensions over the government drive. “If the government starts investigating investments, then the environment of investment will be spoiled,” said Binod Chaudhary, president of Confederation of Nepalese Industries (CNI).
They have demanded the government to clearly define the “productive and unproductive sectors”. Organizing a joint press conference at the office of Federation of Nepalese Chambers of Commerce and Industries (FNCCI), five different organizations associated with industrialists and entrepreneurs put forth the demands.
FNCCI President Kush Kumar Joshi said that the business entrepreneurs are ready to pay tax under the Voluntary Declaration of Income Scheme (VDIS) if the government clarifies the productive and unproductive areas.
Though the government had earlier committed to protect the private sector and encourage investment, the government has been only trying to charge the tax against its commitment, Joshi added.
Nepal Chamber of Commerce (NCC) president Surendra Bir Malakar accused the government of trying to put double burden on businesspersons by imposing 5% tax for the private schools as well. The press conference was organized by five different industrial organizations including the FNCCI, Hotel Association, Confederation of Nepalese Industry and Overseas Export Association.
The government, on the other hand, seems bent on intensifying the tax drive under VDIS. The Inland Revenue Department (IRD) has started coercing industrialists, professionals to pay tax within the extended deadline. IRD chief Kapil Dev Ghimire said that differences that existed between the government and the private sector over VDIS have already been settled.
The government officials have been saying that they have nothing else to clarify.
And, in a move to pressure the private sector, FM is making strong statements.
A few days ago, he urged the student activists affiliated to his party to help the government in collecting tax.
He has already threatened that students of the schools that do not pay five percent Education Service Tax (EST) would be barred from sitting in the School Leaving Certificate (SLC) exam.
