At least
five per cent of the population has to come under the tax net for a healthy
economy, according to finance minister.
Addressing
an interaction held here today, finance minister Shankar Prasad Koirala asked
the private sector to take advantage of the government's policy of bringing
people under tax net and utilise the time frame that it provided to adjust tax
mismatch. "The government had extended the time frame for the adjustment
of tax mismatch on the private sector's request," he said, asking them to
take advantage and settle their dues. "Otherwise, the government will be
forced to take action, after December 16."
The
government has given December 16 deadline to pay Rs 4,000 fine and settle the
tax mismatch dues. After, the deadline, they have to pay at least Rs 100,000 as
the revenue administration is going to be strict on it.
The
government is also planning to tighten noose on professionals like lawyers,
doctors, media houses and engineers and bring them under the tax net. There are
some 10,000 lawyers, mushrooming media houses that have been not complying the
tax law.
Likewise,
the traders who are undervaluating while importing goods will also be under the
scanner.
He also
confessed of being unable to improve the industrial sector as the election
government had no right to bring any ordinance of long-term impact.
"The
Industrial Act is in the Cabinet due to the incumbent government's limited
responsibility," Koirala said, adding that his ministry tried to simplify
the revenue administration and prioritised the capacity building of the
taxpayers. "Taxpayers are the ones, who provide resources for the
government and the government has also tried to polish the policy, legal
framework and bureaucratic hurdles."
The
government has taken the blame for the private sector but the result has not
been encouraging," he complained. "The government is ready to help
the industrialists but the domestic production has to be increased for import
substitution to bridge the widening trade deficit gap."
If the
private sector is ready to take ownership of the special economic zones (SEZs)
that the government is planning in Bhairahawa, Panchkhal, Biratnagar and
Simara, he said the government is ready share responsibility.
Though, the
government is fulfilling its commitment, the private sector has not been able
to walk the talk, complained finance secretary Shanta Raj Subedi, on the
occasion. "The tax break plan is brought on request of the entrepreneurs
and traders, but only 500 took the advantage, instead of 30,000," he said,
adding that only 700 have come under the tax net out of the total 46,000 in the
tax mismatch case. "The International Monetary Fund (IMF) has asked the
central bank to direct banks to follow the tax administration, while lending,
which will make it difficult for those, who are submitting different papers to
the bank – while borrowing – and the tax administration – to pay tax, he
informed," Subedi said, asking the private sector to follow the law as the
noose is tightening for the frauds.
Those, who
do not take advantage of the government's legal pardoning, they will be taken
action according to the law, said Department of Money Laundering director
general Chudamani Sharma.
Federation
of Nepalese Chambers of Commerce and Industry (FNCCI) vice president Pradeep
Jung Pandey, on the occasion, asked for the conducive environment for the
business instead of benefits from the government.
Likewise,
the FNCCI president Suraj Vaidya, on the occasion, hailed the incumbent
government for working with the private sector.
The private sector
representatives across the country, asked the government to simplify the
bureaucratic hurdles, legal provision, and bring an integrated policy as the
different ministries have been creating different hurdles for them. They also
asked the government to become sensitive towards the private sector and not
only concentrate on revenue mobilisation.
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