Govt to collect Rs 2.46 billion from VAT evaders

At a time, when revenue mobilisation has been slow, almost in a state of stagnation, struggling to meet the target, the government could rake in Rs 2.46 billion into its coffer, if the current investigation into fake VAT bills is not interrupted.
“After probing 31 tax payers, we have found income tax liabilities come to Rs 1.41 billion and fake VAT liabilities come to Rs 1.5 billion, making a total of Rs 2.46 billion,” revealed the Inland Revenue Department.
According to an IRD report, using fake VAT bills, three industries have defaulted revenue worth Rs 1 billion, one housing company has defaulted Rs 150 million, eight authorised automobile dealers Rs 200 million, seven exporters Rs 890 million, four construction companies Rs 810 million, three electronics business houses Rs 110 million, three hardware shops Rs 140 million, one multinational company’s authorised dealer Rs 100 million and one supplier has defaulted Rs 800 million.
“The department has also forwarded a list of 480 tax payers — suspecting them of using fake VAT bills — across the country to keep them under strict watch,” said IRD Chief Rajan Khanal.
“Using fake VAT bill is a serious crime that equals to using fake currency notes,” said Deputy Prime Minister and Minister for Finance Bharat Mohan Adhikary today at a press meet he called, snubbing the parliamentary Public Accounts Committee that had called him this morning ‘to explain the possible revenue-default of billions’. “The government is committed to making VAT defaulters pay fine,” said Adhikary, trying to come clean on ‘allegations’ that he pressured Finance Secretary Rameshwor Khanal to give amnesty to VAT defaulters. “I have no relations with the alleged VAT defaulters, the pongee Unity scam, casinos’ revenue cheating and transfer of finance ministry officials to lucrative posts.”
Finance Secretary Rameshwor Khanal on Tuesday went on home leave after ‘he was pressured to take decision that could have hurt the government coffer’. Khanal’s decision to go on leave saying he would not return, has hurt those who engineered his removal where it matters the most. Chief Secretary Madhav Ghimire said Khanal is on home leave till April 13 and has tendered resignation with effective from April 14.