Entrepreneurs harp on VDIS deadline extension

Entrepreneurs today again sought an extension of the Voluntary Disclosure of Income Source, which expires tomorrow.
“We are not opposed to the scheme. But, the timeframe should be extended till April 13. Besides, the procedural complications need to be simplified,” said Kush Kumar Joshi, president, Federation of Nepalese Chambers of Commerce and Industry.Krishna Hari Baskota, acting revenue secretary, ruled out any possibility of an extension.
Surendra Bir Malakar, president, Nepal Chamber of Commerce, said entrepreneurs would initiate a struggle if the government did not pay heed to their entreaty. They have set up a 25-member panel to hold talks with the PM.
The entrepreneurs have also been clamouring for exclusion of the investment, whose taxes have already been paid, from the VDIS.
A section of entrepreneurs is of the view that the government should not let the corrupt utilise the VDIS by paying a 10 per cent tax (whereby they can convert their ill-gotten wealth legitimate overnight). The objection stems from the fact that the government is not interested in the source of income as long as the individual complies with the deadline.
Interestingly, the Finance Ministry has targeted high-income groups of professionals like doctors, engineers and lawyers to shore up its revenue collection. Politicians and share investors have not been spared, either.
The government aims to rake in Rs 1 billion through the VDIS. But in reality, the massive publicity drive has not cut much ice with the prospective tax payers. Be that as it may, the Inland Revenue Department has been at it with follow-up activities like telephonic reminders and SMS.
Meanwhile, the private sector is anxious about the “misuse of the information”. Baskota, however, assured all of absolute secrecy.“Though no data is available, the scheme has escalated the flight of capital,” saidDr Shanker Sharma, ex-vice-president, National Planning Commission.Dr Sharma’s doubts are substantiated by a Birgunj-based businessman. “Over the past few days, cash worth at least Rs 20 million is being transferred daily to bordering Indian towns,” he said.As per the Income Tax
Act, defaulters have to cough up penalty up to 100 per cent. Their property will also be seized.

Scheme finds 793 and counting
KATHMANDU: The IRD collected Rs 350 million as revenue till Tuesday afternoon (the declaration stood at Rs 3.5 billion). "A taxpayer paid Rs 10 million on Tuesday. So far this is the single largest amount by an individual under the scheme," said Kapil Dev Ghimire, director general, IRD. "The scheme is also gathering momentum in Dhangadi, Nepalgunj and Dharan. Altogether, there are 22 IRD units in the districts," said Krishna Hari Banskota, acting revenue secretary. "As on Tuesday, 793 people have availed of the scheme. The amount, too, has doubled overnight," added Ghimire.