Wednesday, December 25, 2013

Public Enterprises fail to pay Rs 2 billion tax

The government has failed to mobilise around Rs 2 billion revenue from its own enterprises, as it seems equally difficult to recover revenue from public enterprise (PEs) like from the private sector.
The Public Enterprises (PEs) have to pay the government around Rs 2 billion outstanding tax dues, according to the Finance Ministry.
These public utilities have representatives from the Finance Ministry also but have been failing to file tax. "They have neither audited nor filed tax," said a higher official at the Finance Ministry that has held a interaction with the heads of the state-owned entities yesterday.
The heads of the public enterprises were asked to audit – even if they are in loss – and file the tax, said joint secretary at the ministry Rajan Khanal.
The increasing outstanding revenue – non-tax and tax both – dues of the public enterprise is a serious concern, he said, adding that the ministry officials in the board of these utilities should also aware them.
Most of the PEs are in loss and they do not bother to file tax, which is not a good trend, he added.
Of the total 37 PEs, 21 are in loss in the fiscal year 2011-12, according to the Finance Ministry. The 21 PEs have incurred Rs 3.49 billion net loss in the fiscal year 2011-12, whereas in the fiscal year 2012-13, the government had invested Rs 101.23 billion.
The PEs like Udayapur Cement, Janak Educational Material Centre, Nepal Airlines Corporation, Beema Sansthan, Timber Corporation, Nepal Oil Corporation Nepal Electricity Authority are running in loss. The government has been pumping cash to pay the salary of the staff, but they have not filed tax promoting financial indiscipline.

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