Tuesday, January 7, 2014

Private sector asks government to scrap tax mismatch ordinance

A week before the deadline to settle tax mismatch, some private sector representatives asked the government to scrap the ordinance.
Tax mismatch – knowingly and unknowingly – has to be adjusted through systemic reform, they claimed adding that the businesses would otherwise suffer a huge loss.
Gas Dealers' Federation of Nepal representatives meeting with finance minister Shankar Prasad Koirala asked him to adjust tax mismatch as they cannot pay even after selling their property as it will continue to add up every year.
The team led by federation's president Gyaneshwor Acharya opposed the government offer claiming that they earn Rs 50 profit per cylinder of cooking gas but have to pay double the profit.
The cooking gas doesnot attract VAT anywhere in the neighbourhood, they said asking the government to exempt VAT in cooking gas cylinder and settle the past mismatch. "We are ready to help government, if it scraps past mismatch and brings a policy for the future," he said, advising the government to adjust the cooking gas price upward by sharing the loss with consumers. The minister on the occasion said the traders that the tax exemption offer was brought through ordinance, will have to be cancelled by the ordinance as the law of the land. "It cannot be amended," Koirala said, adding that the incumbent government is going to hand over power to the elected government soon and in no mood to bring any ordinance. "The new elected government will decide on the fate of ordinance," he added.
The government had brought an ordinance offering incentives to settle past tax mismatch by January 15 in the request of traders themselves but as the deadline approaches, the traders are asking to scrap the ordinance.

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