Print Edition - 2014-11-21 | MONEY
College students to check if traders issue VAT bills
Nov 20, 2014-
The Inland Revenue Department (IRD) will mobilise college students at commercial stores to cross-check whether they issue value added tax (VAT) invoice, it said on Thursday.
IRD Director General Chudamani Sharma said the regulator was holding talks with academic institutions in this regard. “In most cases, traders evade tax through under-invoicing, but in some cases, they overvalue goods to get VAT returns,” said Sharma, at an interaction organised by Nepal Chambers of Commerce.
Sharma said the move is aimed at effectively implementing the VAT. “For the purpose, we will hire the students as interns and offer them necessary training,” he said. He urged businessmen to avail various tax-related facilities the government offers to tax payers. “Due to the lack of awareness, a number of traders have failed to enjoy the privileges.”
Sharma said traders reluctance to clear outstanding dues and submit transaction details were “burning problems”. He traders charge VAT to consumers, but they do not provide the transaction details to the government. “Non-filing has affected the entire revenue collection. We will not let go such traders,” said Sharma.
According to IRD, VAT non-filers reached 30.98 percent of the total firms registered, while income tax non-filers stood at 39.51 percent at the end of the last fiscal year. Similarly, outstanding VAT reached Rs 48 billion.
Meanwhile, traders demanded the government simplify the VAT collection and return process and waive VAT for small and traditional traders.
Tebendra Ratna Shakya, a trader, said the government should implement a one-door system for tax payers. He said many tax payers are compelled to pay extra just for failing to submit their reports to the Office of Company Registrar even after they clear VAT in time.
Another trader Santosh Pandey asked the government to involve private sectors representatives in the high-level Taxation System Review and Recommendation Commi-ssion.
Bishnu Khadka, general secretary of the Federation of Liquor Associations of Nepal, urged the government to eliminate duplication in the tax payment system. Giving an instance of house-rent tax, Khadka said home owners are compelled to pay tax to both Municipality Development Trust and the IRO.
Explaining the rationale behind tax restructuring, Rup Bahadur Khadka, chairman of the high-level Taxation System Review and Recommendation Commi-ssion, said there was a need for reviewing the existing tax system to make it compatible with changing times.
Published: 21-11-2014 11:04