Government inefficiency has hit
the private sector, according to business community.
"Government inefficiency has fueled most of the problems," the district chambers' representatives from
across the country blamed the Finance Ministry and Revenue Administration at a
national workshop on 'Revenue administration and Current problems' here today.
The private sector lambasting the
ministry for its inefficiency, red-tapism and terror it has created among the
business community, also blamed the ministry for failing to walk its talk.
"Tax officials are not
entrepreneur-friendly," they complained, adding that the tax
administration had started 'Operation Black' in Makawanpur and 'Operation
Swipe' in Bara to terrorise the business people.
The government is trying to
control market by fixing Maximum Retail Price (MRP) that is not practical and
has failed to create conducive environment for export-oriented industries,
though it claims to boost the exports, they said.
A representative asked the
ministry to also provide facilities to the business community that is the
largest tax payer. "Instead of concentrating on revenue mobilisation only,
the ministry should think of facilitating the private sector and creating
conducive business environment too," they suggested, asking to resolve the
slew of issues like VAT mismatch, increasing the VAT threshold and income tax
ceiling, tax return, catagorisation of small businesses, minimising the
misunderstanding between the tax officials and private sector, and up-gradation
of road infrastructure at the customs.
Accepting the widening gap
between the tax administration and business community, director general of the
Inland Revenue Department (IRD) Tankamani Sharma, on the occasion, said that
earlier mismatch will be resolved with the help of Federation of Nepalese
Chambers of Commerce and Industry (FNCCI). "Let’s give a new start from
today," he said, requesting the business community to issue VAT bills and
keep all the records, according to the law of the land, from today.
The ministry has finalised the
tax administration reform plans — the three-year reform plan and five-year
strategic plan — to make the tax administration more business-friendly and
increase the tax net instead of tax ceiling, he added. "It will be
announced within a week."
Similarly, the department has
also planned to celebrate Tax Day every year and honour the largest tax payer
recognising the contribution made to the economy, Sharma said, adding that a
High Level Tax Administration panel is also on cards to facilitate the system,
apart from categorisation of the businesses that are under the VAT threshold of
Rs 2 million, tax payer education programmes round the year and establishing
tax offices in all the 75 districts.
"However, the department
will keep vigil and monitor the market, if the business people are issuing VAT
bills or not for the effective implementation of the new policies," he
said asking the private sector to cooperate in the move.
The tax payers should be treated
with dignity, vice-president of the FNCCI Bhawani Rana said, asking the
government to fulfill its earlier promises to boost the confidence of the
private sector.
"The ministry is ready to
facilitate the private sector for the economic growth," said finance
secretary Krishnahari Baskota.
SImilarly, caretaker finance
minister Barshaman Pun also promised to co-operate the private sector and help
boost their confidence.
Income tax
ceiling to go up, tax compliance cost high
KATHMANDU: Finance
Ministry has prepared to increase the income tax ceiling.
However, the delay in full-fledged budget has delayed the decision,” said
finance secretary secretary Krishnahari Baskota. Currently, a fixed income of over Rs 160,000 of unmarried and Rs 200,000 of a
married is out of the tax ceiling. “But with the increased inflation, the
income tax ceiling also needs upward reveision,” he said, adding that the
full-fledged budget will increase the ceiling. But he did not elaborated on the
figures. Similarly, the business people of Bajura, Jajarkot and Rolpa have to spend
almost ten times the cost of tax compliance. "The business people have to
pay around Rs 10,000 to go to the tax office and get registered in Personal
Account Number (PAN), which is a mere Rs 1,200 annually," the
representatives of the Farwest Region said, complaining the government for
being more concentrated on big-businesses' issues only. "We are neglected
because we contribute only 20 per cent in the total revenue mobilization and
geographically excluded too," they added.
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