The Public Accounts Committee (PAC) of the Legislature-Parliament has directed the Ministry of Finance to submit a report prepared by the Tax Settlement Commission within 14 days, suspecting negligence in tax exemption provided to various enterprises, which could have prevented entry of billions of rupees into the state coffers. 

The House committee issued the instruction on Thursday after the annual report of the Office of Auditor General said the commission exempted taxes worth Rs 21 billion, which was 68 percent of the total due or outstanding tax amount determined by the commission.

The report has also said most of the taxpayers were offered tax exemptions not because the disputes had reached the court but because they were not willing to abide by the instructions of tax authorities. 

The hearing on the case, however, is unlikely to take place anytime soon.  

“We believe discussions on this issue will be held only after the local level elections, as most of the lawmakers have started returning to their constituencies to take part in the polls,” Public Accounts Committee Secretary Surendra Aryal said. “In the meantime, we will be carrying out our own investigations.” 

The Ministry of Finance had formed the Tax Settlement Commission in the fiscal year 2012-13.

At that time the Ministry was headed by senior Nepali Congress leader Ram Sharan Mahat.

Mahat had formed a three-member commission under LD Mahat.