Plea to end VDIS imposition

Entrepreneurs today reiterated their plea to the government not to investigate the source of their income.
At a meeting at the Finance Ministry here, they requested the ministry to create investment-friendly environment by not investigating the source of already invested in industries. The government conceded this request.
The finance ministry said it was positive towards creating investment-friendly environment but also requested them to pay tax on undisclosed income under the Voluntary Disclosure of Income Source (VDIS) scheme.
A team of industry captains, including Federation of Nepalese Chambers of Commerce and Industry president Kush Kumar Joshi, Confederation of Nepalese Industries president Binod Chaudhary and Nepal Chambers of Commerce president Surendra Bir Malakar along with other entrepreneurs held talks with finance secretaries and revenue officials held elaborate talks on the issue. However, they could not reach any decision today. Another meeting will be held on the issue this week again.
Earlier, on February 11 both sides had agreed to form a team to study the promotion of investment and find a win-win situation for both the entrepreneurs and the government. The team was mandated to submit its report within a week.
"We requested the government to help create an investment-friendly environment," NCC president Surendra Bir Malakar said adding that he hoped that the government would take serious note of it.
At the request of the harried entrepreneurs the government had previously extended the deadline for the VDIS scheme by a month to February 11. The new cut-off date is March 13.
Under the earlier deadline, tax collection exceeded the government's expectations and it ended up collecting Rs 1.42 billion. The extension is being viewed as an encouragement for more entrepreneurs to pay their dues.
In his budget for the fiscal year 2008-09, Finance Minister Dr Baburam Bhattarai had announced the VDIS scheme for collecting 10 per cent tax on income that has no source. The government has been repeatedly saying that it needs money to spent on infrastructure but not a single development project has started yet.


IRD collects Rs 12.5 million more
KATHMANDU: Though the Inland Revenue Department (IRD) collected Rs 1.42 billion (the declaration stood at Rs 14 billion) by the end of first deadline of February 11, after that date it coolected Rs 12.5 million. "After February 11, till Sunday IRD collected Rs 12.5 million," said IRD director general Kapil Deve Ghimire. Some 29 more taxpayers came under VDIS, he said adding that over 3,500 people across the country also paid house rent tax of Rs 100 million till date. A taxpayer had then paid Rs 39.4 million on the last day on February 11, registering it as the single largest amount by an individual under the scheme. Altogether, four persons paid more than Rs 10 million tax each. The number of tax payers under VDIS scheme is increasing. On the previous February 11 deadline, over 1,100 people paid Rs 650 million.