Government honours taxpayers, Vijaya Kumar Shah highest taxpayer

The government has honoured the largest taxpayers in 16 different categories, on the occasion of closing ceremony of Tax Week.

Finance Minister Dr Prakash Sharan Mahat today honoured the largest taxpayers from various sectors at the closing ceremony of the Tax Week organised on the occasion of the National Tax Day 2080, at the Inland Revenue Department (IRD). 

The liquor king Vijaya Kumar Shah -- founder and group chair of Jawalakhel Group of Industries (JGI) -- became the largest individual income taxpayer for second consecutive year, though it is the third time Shah has been honoured.

Nepal Telecommunications Company (Nepal Telecom) became the largest institutional income taxpayer for the fiscal year 2078-79 BS (2022-23), according to the IRD.

Though, the IRD has been celebrating the Tax Day on Mangsir 1 (November 17 this year) since last 12 years, the department has missed the day this year, and organised the felicitation programme on the last day of the Tax Week, today. The director general of IRD Dirgha Raj Mainali and revenue secretary Dr Ram Prasad Ghimire were absent at the programme, as both of them are out of country.

Likewise, Dabur Nepal, Asian Paints, OBC Foods and Feeds Company, Chhimek Microfinance Financial Institution and Global IME Bank are also honoured for being the largest taxpayers in different categories.

Life Insurance Company Nepal, Nobel Medical College, Manakamana Darshan and Bhatbhateni Super Market are also the largest taxpayers.

The government also honoured Nepal Stock Exchange (Nepse) and Bhotekoshi Hydropower Company among the medium taxpayers category, ranging from Rs 500 million to Rs 1 billion.

The government also honoured IME Ltd and Surya Nepal was also honoured for paying the highest income tax, value added tax (VAT), excise duty and paying VAT of five years on time. 

The government also decided to provide a special identity card -- for a period of one year -- for the largest taxpayers, according to finance secretary Dr Krishna Hari Puskar Karna. "The process of distributing identity cards to the largest taxpayers will start today," he said, responding to the vice chair of Surya Nepal -- which has been recognised with two felicitations -- Rabi KC, who asked the government to let them have special pass to enter the Singh Durbar, the seat of power. 

The largest taxpayers for fiscal year 2022-23

Highest Income Tax Payer (Institutional): Nepal Telecom

Highest Income Tax Payer (Individual): Vijaya Kumar Shah (Jawalakhel Group of Industries)

Highest Inland Taxpayer: Surya Nepal

Highest VAT Payer: Surya Nepal

Export Trade: Dabur Nepal

Special Industries: Asian Paints

Agriculture and Livestock Industries: OCB Foods and Feeds

Cooperatives/Microfinance: Chhimek Laghubitta Bittiya Sanstha

Banks/Finance institutions: Global IME Bank

Insurance: Life Insurance Corporation (Nepal)

Health/Educational Institutions: Nobel Medical College and Teaching Hospital

Tourism: Manakamana Darshan

Commodities Trade: Bhat-Bhateni Supermarket and Departmental Stores

Medium Scale Taxpayers: Nepal Stock Exchange (Nepse)

Energy: Bhotekoshi Power Company 

The largest individual taxpayers

2012 -- Prithvi Bahadur Pandey

2013 -- Siddhartha SJB Rana

2014 -- Siddhartha SJB Rana

2015 -- Dr Upendra Devkota

2016 -- Siddhartha SJB Rana

2017 -- Siddhartha SJB Rana

2018 -- Siddhartha SJB Rana

2019 -- Siddhartha SJB Rana

2020 -- Vijaya Kumar Shah

2021 -- Siddhartha SJB Rana

2022 -- Vijaya Kumar Shah

2023 -- Vijaya Kumar Shah

Shah becomes highest tax payer

Vijaya Kumar Shah, chairman of the Jawalakhel Group of Industries became the largest taxpaying Nepali in the last fiscal year. 

Shah, who leads Jawalakhel Group of Industries that incorporates companies like Jawalakhel Distillery, Himalayan Distillery, Raj Brewery, Asian Distillery and Vijay Distillery, received recognition as the largest tax paying person a fiscal year ago on the occasion of the 9th National Tax Day, also.

Finance Secretary Krishna Hari Pushkar honoured Shah along with Surya Nepal Pvt Ltd – as the largest institutional taxpayer today at a programme organised by the Inland Revenue Department (IRD) to mark the 11th National Tax Day 2022.

During the last fiscal year 2021-22, Surya Nepal paid Rs 10.72 billion in taxes, up from Rs 9.34 billion a fiscal year ago. The company sells cigarettes, matchboxes, incense sticks and confectionery.

The government honours largest taxpaying individuals and organisations under 15 categories of taxes on the occasion of the National Tax Day every year.

The government also honoured Nepal Telecom under the largest income taxpayer category, whereas the producer of refined oil and vegetable ghee Shiva Shakti Ghee and Rajesh Metal Crafts were honoured under export-based and special industry categories. The OBC Feeds and Food was honoured under the agriculture and livestock industry category. 

Likewise, Chhimek Laghubitta Bittiya Sanstha received honour under cooperative category, Nabil Bank under banking sector and IME Remittance under remittance category are also honoured for their largest tax contribution in their respective sectors in the last fiscal year.

The Inland Revenue Department (IRD) Nepal has honoured Nabil Bank chief executive officer (CEO) Gyanendra Prasad Dhungana for the bank’s contribution. Nabil Bank had paid Rs 2.79 billion in taxes in the last fiscal year. This is the seventh consecutive year – in the past 10 years – that Nabil Bank has been honoured for its contribution to the national exchequer. “The Bank has paid Rs 18.38 billion in taxes to the state in the last 10 years. “The bank has also distributed Rs 14.45 billion in cash dividends and bonus shares worth Rs 18.8 billion to its investors,” according to the bank.

According to a press note issued by the Inland Revenue Department, the programme to commemorate the 11th National Tax Day also witnessed Nepal Re-insurance Company being honoured as the top taxpayer in the insurance category. Biratnagar-based Nobel Medical College and Teaching Hospital was felicitated as the top taxpayer in the health and education categories. 

Manakamana Darshan, the operator of the cable car in Kurintar and Chilime Hydropower were honoured as the highest taxpayers in tourism businesses and energy-oriented industries, respectively. Similarly, Nepal Stock Exchange topped the list among medium-scale taxpayers.

IME Ltd, the first money transfer company in Nepal, was honoured as the highest taxpayer in the remittance and money transfer category, whereas Hansraj Hulaschand and Co was honoured for its contribution to the commodity trade sector.

According to the department, Gorkha Brewery, the producer of Tuborg, Carlsberg and Gorkha beers, Somersby Apple Cider and Red Bull energy drink, was announced as the largest contributor in the value-added tax (VAT) category. Likewise, Mangalam Industries Pvt Ltd – a manufacturer of water supply, plumbing, sanitation, and drainage piping solutions and also the first CPVC Pipes and Fittings manufacturer and leading polymer piping systems manufacturer and exporter from Nepal – was the highest taxpayer company in the manufacturing industry.  during fiscal year 2021-22. According to the press note of the IRD, the award was handed over to chairman Dr Sudarshan Churiwal and director Mrs Shashi Churiwal of the company.

In the last fiscal year, Rs 429.27 billion in revenue has been collected, against the target of Rs 450.34 billion, according to the department press note. “The total number of taxpayers in the country, including the businesses and individuals holding a permanent account number (PAN) reached 4.81 million as of 2020-21, among which, some 3.05 million are individual PAN card holders, by the end of the last fiscal year.”

Government extends deadline to file tax to July 9

A day after the Supreme Court's verdict,  the government today extended the deadline to submit tax details and settlement of tax dues to July 9.

Citing the ongoing prohibitory orders imposed across the country, the Inland Revenue Department said that the deadline has been extended according to the decision of Finance Ministry.

The Supreme Court has yesterday decided that the Finance Minister, according to the Economic Act 2077, can extend the deadline for tax settlement, and the court need not decide on it.

Issuing a public notice today, the Inland Revenue Department (IRD) said the new deadline will be applicable in clearance of value added tax (VAT), income tax, excise duty, education service fee, telephone ownership fee and telecommunication service charge.

The private sector has been asking the government to extend the tax payment period citing their inability to file tax due to the prohibitory order.

Earlier, last year, the Supreme Court had issued an interim order to the Finance Ministry not to collect VAT or impose fine on taxpayers for not paying taxes during the period of the ongoing prohibitory orders.

The government to check the spread of coronavirus imposed lockdown on March 24, 2020 across the country. Them also when the government tightened the tax noose, advocates Srijana Adhikary moved the the Supreme Court, which issued a showcase notice not to collect tax in the time of lockdown. The Supreme Court had, then ordered the government not to collect tax before the lockdown is completely lifted. It had ordered the government to allow 30 days after the complete lifting of the lockdown time to the taxpayers to pay their dues.

Citing difficulties in managing its financial resources, the Finance Ministry also went to the Supreme Court demanding that the court vacate its order. The government argued that it was collecting only around Rs 15 billion a month from the customs and a few billion rupees from other internal revenues, though it spends around Rs 40 billion to meet basic liabilities. On June 15, 2020, The Supreme Court turned down the government’s request to review its interim order that was against the decision of the Finance Ministry’s notice to the taxpayers.

This year too, during the second wave of coronavirus, the government imposed prohibitory order, and the economic activities have been stalled. The private sector has been asking the government to postpone the tax filing dates, and not impose fines during the prohibitory times.

Government directs to keep detail record of customers buying precious metals of over Rs 1 million in a day

 The government has asked the bullion traders to record the identity of customers, who buy precious stones and metals worth more than Rs1 million in a day.

The government claimed to take the move – aiming at making trade transparent and discourage money laundering. Lately, the corruption money has been found to be used in buying precious stones and metals.

The Inland Revenue Department (IRD) – that has been named the regulator of the bullion sector two years ago – plans to implement the directive for a few bullion traders only at present. “The initial target is some 400 to 500 bullion traders – both wholesalers and distributors – and commercial banks," the department informed, adding that it has asked the bullion traders to comply with the directives.

According to the anti-money laundering law – that has been brought two years ago – traders can be subject to a penalty of upto Rs 10 million for failing to abide by the directive. 

The bullion traders have not been reporting the trading of over Rs 1 million of precious stones and metals, though the Money Laundering Prevention Act categorises bullion traders as reporting entities. They need to record – details of customers, who buy precious metals worth over Rs 1 million – and report suspicious transactions to designated authorities, the Act reads.

As per the directive, bullion traders will have to submit a report about any transactions above Rs1 million by a customer in a day to the Financial Information Unit (FIU) – under the central bank – within 15 days of suspicious transaction. In case of suspicious transactions, the bullion trader should submit a report about it to the FIU within three days, the directives reads, “While submitting such a report, the bullion trader should submit the report in a format prescribed in the directive.”

The government’s recent National Risk Assessment Report has also said there is ‘Medium’ risk of money launderers through the bullion market. The bullion traders neither operate with minimum regulations nor are aware of their AML/CFT obligations increasing the risk of anti money laundering, the report reads, adding that Nepal needs to prepare ahead of the planned evaluation of Nepal’s performance against money laundering and terrorism financing by Asia Pacific Group (APG) – under the Financial Action Task Force (FATF) – in June 2021 on money laundering, fraudulent and smuggling activities.

The government has yet to prepare laws and implement the Acts and regulations that it had brought after the last evaluation of Nepal by the APG.

The new directive also requires bullion traders to maintain updated records on ‘politically exposed persons’ (PEPs), who are suspected to channelise their illegal earnings through businessmen. The transactions by PEPs are considered risky also because they are often found indulge in corrupt activities by misusing their positions.

“Bullion traders need to ensure that the PEPs and their family members are properly identified through documents from credible sources,” the directive reads.

According to the Money Laundering Prevention Act, PEPS range from rural municipality vice-chairpersons to the president and senior bureaucrats. “A trader of precious metals needs to develop a risk management system to identify PEPS and also make effort to find the source of funds,” the directive reads, adding that such enhanced due diligence should also be implemented in the case of those who are found involved in suspicious transactions like those who purchase precious metals on a large scale and unusual ways. “If someone buys precious metals on the behalf of others, a bullion trader needs to identify the real customer.”

But the bullion traders say that it is difficult for them to identify PEPs, though they can seek the identification of persons, who buy precious stones and metals above Rs 1 million in a day. 

Government goes bankrupt

Though, incumbent finance minister Dr Yuba Raj Khatiwada – issuing a whitepaper two years ago intending to tarnish the earlier government’s image – claimed that the government coffer was empty and the economic indicators were worse, he has finally succeeded to empty the treasury and worsen the economic indicators further, by himself.
As Khatiwada presented his third budget in a row – the only second lucky finance minister to do so after 1990 – the government has no money to pay salary to its employees because of its failure in mobilising the revenue. “The government is having a cash crunch to manage immediate liabilities due to a shortage in revenue mobilisation also because of nationwide lockdown imposed since last 82 days,” a senior government employee at the Finance Ministry confirmed.
The government has imposed nationwide lockdown since March 24 that has stagnated all the businesses activities across the country. The government needs around Rs 40 billion – every month – to meet mandatory liabilities like regular salary to its employees, but it has been able to mobilise around Rs 15 billion from the major source – customs offices – only in a month, according to the Finance Ministry official. The government coffer has only around Rs 50 billion at present, which is enough for the salary of next month, which is the last month of the current fiscal year,” he said, adding that from the first month of the next fiscal year, the government will not be able to pay regular salaries to its staff also due to Supreme Court move to restrict the government to collect tax during the lockdown. “The Supreme Court has issued interim order to the government not to push the private sector for tax during the lockdown and allow them 30 days after the lockdown, is fully relaxed, to clear tax dues.”
The Finance Ministry has, however, moved to the Supreme Court to vacate the interim order as it will fail to pay salary, if it is not allowed to mobilise tax this month. The government imposed a nationwide lockdown on March 24, closing industries, businesses, suspending ground and air travel, and has asked to pay tax within June 21. Some entrepreneurs went to Apex Court asking an interim order against the Inland Revenue Department (IRD) – under the Finance Ministry – diktat.
According to the Financial Comptroller General’s Office (FCGO), the revenue mobilisation as of today stands at only 58 per cent of the target that is Rs 1.11 billion. Although the government keeps high hopes on gathering a significant amount in taxes in the final month of the fiscal year, it is likely to face a huge shortfall due to Supreme Court’s interim order this time.
The government has an option to transfer the money from various funds into its treasury to meet its necessary liabilities including salary for government workers, pensions for retired employees, social security allowance for the elderly and disadvantaged groups, and payments to be made for internal and external loans.
Citing the adverse situation in revenue mobilisation, the government expects to receive Rs 299.50 billion from external debt and Rs 225 billion from domestic borrowing mainly to meet the recurrent expenditure. But the government capacity to absorb the external debt is limited due to structural and procedural problems, whereas more domestic borrowing will squeeze private sector’s capacity to borrow hurting the economic growth. “Likewise, borrowing to pay salary to the government employees will also send a wrong message as the private sector is also not able to pay salary to its employees,” the official said, adding that more domestic borrowing – for administrative purposes – could also result in an exorbitant rise in market prices.
While presenting his third budget on May 28, Khatiwada claimed that the government will be able to mobilise Rs 827 billion revenue, contain inflation under 7 per cent, and achieve 7 per cent economic growth.

After huge pressure, government extends tax clearance date till June 21

The government has backtracked from its earlier decision – within 24 hour – on payment of individual and business taxes and deferred the deadline to pay taxes and submit tax details by 15 days to June 21 after a huge pressure from the private sector and the main opposition Nepali Congress (NC).
According to the new notice by the Inland Revenue Department (IRD) published today, the deadline is extended keeping in mind the nationwide lockdown and risk of coronavirus transmission. The government has imposed the lockdown till June 14 – by extending it for the eighth time since March 24 – to contain the spread of coronavirus. And the department yesterday published a notice ordering businesses and individuals to clear their tax dues by June 7 as in the normal times. The department – in the notice – asked businesses and individuals to submit the second instalment of income tax of the current fiscal year by mid-June and value added tax (VAT) and excise duty till mid-March and mid- April, respectively, by June 7. “The failure to meet the deadline for filing tax returns and clearing tax dues of previous months will result in charges,” the notice read.
But the notice only infuriated private sector, citizens and main opposition party. The main opposition party Nepal Congress – issuing a press note signed by party president Sher Bahadur Deuba – has urged the people to gently disobey the government diktat to clear tax by June 7, as the country is still under lockdown since last 72 days bleeding the economy. Nepali Congress alleged that the government has been terrorising private businesses, labourers, and farmers with tax compliance instead of introducing a special relief package to them.
The businesses have remained shut for almost two-and-a-half months since March 24, and the movement has been curtailed by the government, which is forcing the people to pay tax by June 7 within lockdown period, said an angry entrepreneur. The lockdown has been imposed till June 14.
After the criticism from different sectors of the society, the department in its new notice today said that the deadline to submit tax details, income details and payment of taxes has been extended to June 21. The department has extended the deadline to pay value added tax, excise duty, tax deducted at source (TDS) under income tax, education service tax, telephone ownership fee, and telecommunication service fee to June 21 from the previous deadline of June 7, according to a notice issued today by the department.
According to the revised decision, businesses and individuals are now required to submit the second installment of income tax of the current fiscal year by June 29, the new notice reads, adding that VAT and excise duty need to be submitted by June 21.
This is the third time that the government has extended the deadline to pay taxes as the country continues to remain in lockdown to prevent the spread of Covid-19, which has claimed nine lives and infected over 2,300 people across the country till date.
The infuriated private sector representatives – including Federation of Nepalese Chambers of Commerce Industry (FNCCI), Confederation of Nepalese Industries (CNI), and Nepal Chambers of Commerce (NCC) – has criticised the government decision for exerting undue pressure on the private sector to clear taxes despite the continuation of lockdown.
The deadline extension followed a request from the private sector representatives to the finance secretary Shishir Kumar Dhungana during a meeting with Finance Ministry officials today morning. “The government decision to extend the deadline is a move towards a positive direction,” senior vice-president of the FNCCI Shekhar Golchha said, adding that the private sector has asked that the deadline be extended till the end of current fiscal year, until mid-July. “Most of the businesses are not in a position to pay taxes immediately as there is still a lack of cash flow due to the fact that the markets are closed.”
The VAT and excise duty are taxes that the business people have collected in the market but they have already been spent. “So, they need to raise cash from the market to pay the tax authority,” he added.
The government, on the other hand, is under pressure to mobilise revenue as the government coffer is almost empty, and from the beginning of the new fiscal year 2020-21, the government may not be able to pay salary to government staff due to huge deficit in revenue mobilisation because of its failure in collecting taxes.
According to the Finance Ministry, the government has only collected Rs 657 billion so far, against a target of Rs 967 billion by mid-June. “Though Dr Yuba Raj Khatiwada is the second lucky finance minister to present three budgets in a row – after 1990 – he has failed, for the second consecutive years, to mobilise the revenue and also spend budget,” sources at the Finance Ministry claimed that the stronger government – in the history of Nepal – led by KP Oli has failed to create business friendly environment and promoted ‘some businessmen’ for the benefit of the party. “The stable, stronger and powerful communist government is promoting crony-socialism rather than taking care of people, which has resulted in the revenue deficit since last two fiscal years after Khatiwada took charge of the Finance Ministry.”

LTO recognises NT as highest taxpayer

The Large Taxpayers’ Office (LTO) today felicitated Nepal Telecom (NT) as the highest taxpayer – in terms of income tax from telecommunications sector – a couple of days after the government felicitated 15 firms as highest taxpayers of the fiscal year 2018-19.
Inland Revenue Department (IRD) has – marking the National Tax Day on Sunday – recognised some 15 top tax contributors as usual. But telecom companies – both Nepal Telecom and Ncell – could not make it to the top taxpayers’ list, unlike earlier years. The government generally recognises firms and individuals on the basis of income tax they pay, which is why both telecom firms could not make it to the list of top taxpayers of IRD for last year, though Ncell had earlier bagged the title of highest taxpayer institution for two consecutive fiscal years 2012-13 and 2013-14.
The LTO felicitated Nepal Telecom today as the largest taxpayer – based on income tax – among firms under its jurisdiction, though the telecom could not make it to the list of IRD’s top taxpayers.
There are some 13 tax offices in the Kathmandu valley under the jurisdiction of LTO. The Nepal Telecom was the highest taxpayer from the service sector.
Among the two telecom service providers, Ncell is regarded as one of the largest contributors of tax to the government but it also could not make it to the list of both IRD and LTO this time. According to a report published by Ncell’s parent company Axiata, Ncell paid $257 million in taxes – some 4.2 per cent of total tax revenue of the Nepali government in 2018 – last year. The domestic sources have also confirmed that Ncell had paid almost Rs 32 billion in taxes to the government last year. But Ncell could not make it to the list of top taxpayers, as the company did not meet the criteria for the recognition.
According to the criteria, a taxpayer should have paid necessary taxes regularly and on time, does not have pending dues and has submitted all the details sought by the government.

Surya Nepal, Siddhartha Rana highest taxpayers

Surya Nepal has become the highest taxpayer and been honoured today.
Surya Nepal has already been honoured thrice in the past too. Likewise, Siddhartha SJB Rana is the top taxpayer under the individual category. Rana is involved in hotel, trading and travel sectors. He has been honoured continuously for the last six years as the top individual taxpayer.
Similarly, Dabur Nepal is honoured for being the highest exporter and Jagdamba Steel Industries for paying the highest taxes from among firms not selling tobacco or alcohol products. Among cooperatives, Chhimek Laghubittiya Bittiya Sanstha bagged the highest taxpayer award while Kamana Sewa Bikash Bank and Rastriya Banijya Bank were honoured among development and commercial banks, respectively. Similarly, Nepal Life Insurance Company is felicitated among the insurance companies.
In the Information and Technology sector, WorldLink Communication is the highest taxpayer and Taragaon Regency Hotel is honoured in the tourism sector for paying highest tax. Other companies to be felicitated are Annapurna Agro International, Manipal College of Medical Sciences, Agni Incorporate,  VS Services and Ghorahi Cement Industry.
The government honoured the highest taxpayers of the country – for promoting the taxpaying culture – under different categories on the occasion of the eighth National Tax Day, today.
Finance minister Dr Yuba Raja Khatiwada honoured the top companies in 15 categories at a programme organised by Inland Revenue Department (IRD). IRD has classified the highest taxpayers as individual, industry, agriculture, financial sector, insurance, tourism and trade categories.
On the occasion, IRD also awarded its 10 best employees for their performance.

Revenue mobilisation target falls short

The government failed to meet the revenue mobilisation target due to shortfall in value added tax (VAT) and income tax in the first four months of the current fiscal year.
The Inland Revenue Department (IRD) – In the period between mid-July and mid-November – has mobilised Rs 104 billion revenue, which is only 83.2 per cent of the target. “Of the annual revenue mobilisation target of Rs 506 billion – for the current fiscal year 2019-20 – the target for the first four months was set at Rs 125 billion.
The department informed that it is also unable to meet the revenue mobilisation target for excise duty, health service tax and education service fee. “However, the collected amount was an increase of 23 per cent against the department’s revenue mobilisation in the same period of last fiscal year,” the department informed, claiming that the department is continuously identifying the lapses and initiating reforms for revenue mobilisation.
The IRD had formed the study team in July to identify the lapses in tax mechanism, and recommend it.
The department is also gearing up to provide the facility of 10 per cent cashback on electronic payments to promote the digital payment system and also the formal channel for trading.
The department is also gradually implementing its five-year (2018-19 to 2022-23) tax reform strategic plan to make the revenue administration more stronger ans transparent.

Only 10 per cent of Nepalis pay tax

Though the government claims to have reformed tax administration and expanded tax net, only 10 per cent Nepalis pay tax.
According to the Inland Revenue Department (IRD) director general Binod Kunwar, only 2.96 million Nepalis are under the tax net, including income tax and value added tax (VAT). The population of Nepal has around 3 million population, according to the Central Bureau of Statics (CBS).
“In the last fiscal year, some 2 million Nepalis were under the tax net,” he said, adding that some 800,000 tax payers have been added in the current fiscal year. “The ‘Pan for All’ programme has encouraged more Nepalis to come under tax net,” he claimed, adding that the government has also made PAN mandatory for all working Nepalis to get their salary paid. “Likewise, there are some 2339,000 taxpayers under the value added tax (VAT) net.”

Some 900 firms under DRI scanner for ‘tax evasion’

According to Department of Revenue Investigation, more than 900 firms are under investigation for purchasing and using fake value-added tax (VAT) bills. “These firms were delivering goods and services to government agencies, contractors, multinational companies, hydropower companies and hospitals, depriving the government of its revenue,” according to director-general of the department Dirgharaj Mainali.
More than 100 companies that sold fake bills are currently under the scanner, he said, adding that it had earlier filed cases against 39 individuals for printing and selling fake VAT bills. In March, the department had registered a case for the first time against 24 individuals. An additional 15 individuals were dragged to the court in June.
“The combined value of the fake VAT bills under investigation is around Rs 11 billion,” Mainali said, adding that the alleged VAT scam may be the biggest one yet in terms of both value and the number of firms involved. “The department today also filed a case at the Kathmandu District Court against proprietor of Lucky AS Enterprises Sunil Kumar Gautam for evading taxes worth Rs 99.56 million through alleged submission of fake VAT bills.
According to the body responsible for investigating revenue theft, it is the third case filed by the department in the last 10 days against people submitting fake VAT bills. “The alleged tax evasion in the three cases is cumulatively worth Rs 342.85 million,” a press note issued by the department reads.
The department – on November 12 – registered a case at the Kathmandu District Court against proprietors of Huspy Care International and Shree Shyam Traders for dodging taxes worth Rs 111.98 million. Likewise, the department – on November 5 – had filed a case at the same court against the proprietors of Nepal Donghua Construction Engineering Company, charging them of evading both VAT and income tax worth Rs 131.31 million.
After targeting the sellers of fake bills, the department is focusing now on investigating and filing cases against the firms that purchased and used them to evade tax, Mainali said, adding, “By showing higher expenditure on fake purchases, they also paid less income tax.”
Earlier, in the fiscal year 2010-11, the Inland Revenue Department (IRD) had built up cases to recover Rs 6.69 billion in back taxes from 518 firms. Many of these cases remain undecided but the Supreme Court is going to be decided very soon.

Nepal Satellite Telecom’s licence revoked

The license of Nepal Satellite Telecom (NST) has been automatically terminated as it failed to clear outstanding dues by the deadline that was yesterday, according to the Nepal Telecommunications Authority (NTA).
The private telecom company operating under the Hello Nepal brand owes some Rs 799.2 million as of July 16 as royalty, licence renewal fee, frequency fee, service expansion fee and Rural Telecommunication Development Fund (RTDF). But the Nepal Satellite Telecom has failed to clear its dues, despite repeated calls from the telecom regulator.
“The license has been automatically terminated as the company failed to pay its dues within the deadline of August 18,” the NTA informed, adding that the telecom company can, however, appeal within 35 days in regard to the automatic termination of the license, and the court’s verdict will be final in relation to its licence, if it moves to court.
“After a negotiation, the NTA had earlier directed Nepal Satellite Telecom to deposit the first tranche – Rs 70 million – of its dues by August 18 and clear the remainder of the outstanding dues within three months,” the NTA said, adding that the Nepal Satellite Telecom’s licence has been revoked automatically as the telecom service provider failed to deposit the first tranche of its tax dues by yesterday (August 18). “Had the telecom service provider paid the first installment, the company would have gotten an additional three months to clear the rest of its dues.”
Earlier, the telecom regulator asked Nepal Satellite Telecom to deposit its dues by the end of the last fiscal year. Instead of paying, the telecom company moved to the court to cancel the amount payable to NTA and an interim order was duly issued. But the Supreme Court refused to continue the interim order.
After the Supreme Court’s order, the NTA had – on July 22 – also sought a clarification from Nepal Satellite Telecom asking why its licence should not be revoked, to which the telecom company responded with a bargain that it would clear the dues, if it was allowed to expand its services in Kathmandu.
The NTA board meeting on August 3, however, directed the company to pay Rs 70 million – the first installment – within 15 days and pay the remaining amount within three months. But Nepal Satellite Telecom failed to deposit the Rs 70 million by August 18.
Nepal Satellite Telecom – owned by businessman Ajeya Raj Sumargi – has also been dragged into tax issues, earlier in May too. The Inland Revenue Department (IRD) had directed Nepal Satellite Telecom to pay Rs 4.31 billion capital gains tax (CGT) out of the gains the company made, while transferring 75 per cent of its share to TeliaSonera eight years ago.
Though NTA claimed that it was not in favour of scrapping licences of telecom service providers, they were obliged to scrap the licence as many telecom companies regularly failed to pay their dues by holding on to licences, not expanding telecom services as promised by them, and also not clearing applicable tax dues to the government on time.
But In February, the Public Accounts Committee (PAC) had directed the telecom regulator to recoup the amount and revoke the licences of all operators that failed to pay their dues within a month. Likewise, Finance Committee under the parliament had also instructed the Finance Ministry and Ministry of Communication and Information Technology to do the needful to recover dues from different telecom companies. The committee had even instructed the NTA to scrap their licenses, if they fail to clear their dues in time.
According to the authority, nine telecom service providers including Nepal Satellite Telecom, United Telecom, Smart Telecom, and BroadLink Network have yet to clear Rs 4.31 billion accrued as frequency charges, royalties, and RTDF.
In 2007, Nepal Telecom Authority had issued telecom service licence to Nepal Satellite Telecom that has been providing telecom services to a limited number of customers primarily based in the far-west region, though it had acquired licence to provide telecom services across rural areas. “The company did not expand its telecom services as was promised,” the regulator added.

Nepse makes PAN mandatory for big share investors

Nepal Stock Exchange (Nepse) has made Permanent Account Number (PAN) mandatory for high-volume share investors from today in a bid to encourage transparency in the secondary market.
Earlier, Securities Boards of Nepal (Sebon) had directed Nepse to implement the provision of making PAN compulsory for traders conducting daily transactions of above Rs 500,000 from April 14 after consulting with the Inland Revenue Department (IRD). But the decision was revoked after the after stock investors' protest.
The capital market regulator has, however, said that the investor, who does transactions of below Rs 500,000 per day can voluntarily submit their PAN. "Its not mandatory for them," the regulator said, adding that submission of PAN will help the government to identify individuals and companies and track their source of money.
"It will promote transparency in the secondary market," the Nepse also said, adding that the provision will also help determine the exact number of large investors in the secondary market. "Based on the number of demat accounts, Sebon estimates that there are 1.5 million investors in the secondary market."
The investors are of the view that the mandatory PAN provision will hit number of transactions and trading volume. Finance Minister Dr Yubaraj Khatiwada, while presenting the government’s policies and programmes for the current fiscal year, had clearly stated that the PAN provision would be made mandatory for stock trading from this fiscal year.
According to chief executive officer of Nepse Chandra Singh Saud, submission of PAN will help the government to identify individuals and companies and in tracking the source of money, which will eventually promote transparency in the secondary market. 

Bar Telecos with dues from adding services, facilities and increasing capital

Parliamentary Finance Committee directed the telecom regulator to bar telecos from adding services, facilities and increasing capital until they clear their dues.
The committee has asked the Nepal Telecommunications Authority (NTA) to recover Rs 2.96 billion dues from different telecommunication companies. After the committee's diktat, the regulator had issued a notice on February 11 giving telecommunication companies one-month deadline to clear their dues. The deadline has already expired on March 10.   But the telcos asked the regulator to extend the deadline till mid-July – instead of paying the dues – saying that they need more time to induct more shareholders and investors to pay their dues.
The outstanding dues include taxes and fees like income tax, value added tax, frequency fee, renewal fee and compulsory contribution to Rural Telecommunication Development Fund, according to NTA.
Smart Telecom owes the highest at Rs 1.4 billion, whereas United Telecom Limited (UTL) and Nepal Satellite Telecom Pvt Ltd owe the government Rs 794 million and Rs 735 million, respectively, according to the regulator, that has decided to extend the deadline till mid-July as requested by some telecom companies. Though some companies has not yet responded to NTA's ultimatum, mid-July is the final deadline extension for them to clear dues, claimed the regulator.
The UTL is increasing paid-up capital to clear the dues, while Smart Telecom is planning to clear dues after bringing new investors. Likewise, Nepal Satellite Telecom is planning to clear dues in installments, after the regulator's letter.
The parliamentary Finance Committee had earlier instructed the Finance Ministry and Communication Ministry to recover the dues from different telecom companies. The committee had also instructed the NTA to start the process of scrapping operating licenses of the telecos that failed to clear dues within the deadline.
Meanwhile, the committee concluded that there are serious flaws in tax assessment systems, after studying tax compliance by telecom companies. "While studying ownership transfer of Ncell, the committee had asked all ministries concerned to submit details of shares transfer of Ncell and Spice Nepal, all minutes of decisions, and the list of officials of Finance Ministry, Nepal Rastra Bank (NRB), Inland Revenue Department (IRD), Large Taxpayers Office (LTO), who took decisions on assessment of CGT in Ncell buyout.
Chairperson of the Finance Committee Krishna Prasad Dahal said that government agencies cannot violate instructions given by the parliamentary committee. 

Surya Nepal, Siddhartha Rana highest taxpayers

Siddhartha SJB Rana bagged the award for paying the highest amount of income tax in individual category, whereas Surya Nepal paid the highest tax among the companies. Likewise, Sipradi Trading paid the highest tax among trading companies for the last fiscal year 2016-17.
Rana – the executive chairman of Sipradi Trading – has bagged the highest taxpayer award for the fifth time in last seven years. The Inland Revenue Department (IRD) today honoured Rana and Sipradi Trading amid a function organised in the capital today, on the occasion of 7th National Tax Day.
Rana was awarded the highest taxpayer for the consecutive five years (2012-13, 2013-14, 2014-15, 2015-16 and 2016-17), whereas Sipradi Trading has earned the distinction of being the highest income tax payer among trading companies for the consecutive four years – from 2012-13, 2014-15, 2015-16 to 2016-17.
Along with being the executive chairman of Sipradi Trading, Siddhartha SJB Rana has been instrumental in consolidating and expanding various businesses in Nepal. As a young visionary in the Nepali corporate world, he was selected as the 'Global Leader for Tomorrow' by the World Economic Forum (WEF), Davos in 2001. Rana is a committed philanthropist in education, economic upliftment, heritage preservation and wildlife conservation. He has made the single-largest personal donation to Help Nepal Network (HeNN) that works in the field of health and education in rural Nepal. Rana was also awarded with the Karobar Excellence Award 2018 as the highest individual taxpayer of the country.
Likewise, Sipradi is a major player in automotive and allied business for over 37 years in Nepal. The company has been a sole distributor of Tata Motors, India and is an exclusive distributor of MAK Lubricants, Michelin Tires, Exide Batteries, TATA-Hitachi and other various line of products in Nepal. Sipradi was also honoured by Inland Revenue Department (IRD) for being the first company in Nepal to embrace and implement Central Billing Monetary System (CBMS) in the year 2017 and bringing all trading records of the firms into the government’s surveillance system. 
The government has honoured some 15 highest taxpayers under different categories today to promote the taxpaying culture in the country. Finance Minister Dr Yuba Raj Khatiwada honoured the top companies in 15 categories during the programme organised by the Inland Revenue Department (IRD).
Leaving the last year's highest tax payers telecom companies far behind, multinational company Surya Nepal was announced the highest taxpayer this year. Surya Nepal has been a top taxpayer twice in the past as well,
Probiotech Industries (agro and livestock sector) under the the Nimbus Holdings that deals with around 20 products in animal feed, another 20 in feed supplements and 20 more in fine chemicals, vaccines and medicines also bagged the award. Likewise, Chhimek Laghubitta Bittaya Sanstha (cooperatives and microfinance institutions), Nabil Bank (bank and financial institutions and remittance companies), Nepal Reinsurance Company (among insurance companies), Noble Medical College and Teaching Hospital (among health and education service providers) and F1 Soft International (IT sector), Taragaon Regency Hotels (tourism sector), Nepal Investment (companies with annual turnover up to Rs 400 million), Nepal Stock Exchange (highest amount of income tax among the list of companies which have annual turnover between Rs 400 million and Rs 800 million), Dabur Nepal and Himal Power.
Addressing the programme, finance minister Dr Khatiwada urged to pay tax. "Non-payment of tax would be a hindrance to the nation," he said, stressing on the need of raising awareness that even the lowest tax-payer is a respectable tax-payer.
Likewise finance secretary Dr Rajan Khanal, on the occasion, said that the government is planning tax reform and that some changes have been visible in the last few years.
Federation of Nepalese Chambers of Commerce and Industry (FNCCI) president Bhawani Rana, Confederation of Nepalese Industries (CNI) chair Hari Bhakta Sharma and president of Nepal Chambers of Commerce Rajesh Kaji Shrestha drew the government’s attention towards creating environment conducive for investment in the industrial sector by making industry-friendly taxation system.

Trading resumes after government rolls back decision to hike CGT threshold

Nepal Stock Exchange (Nepse) resumed trading – in the second half of the trading session today – after the government rolled back its earlier decision to revise the method of calculating capital gains tax (CGT) on trading of bonus and rights shares for two weeks.
The investors withdrew their protest against the new CGT calculation method enforced by the Inland Revenue Department (IRD), according to the investors. "The protest was called off following the government's decision to put the new calculation method on hold for the time being," they said. "According to the new calculation method, CGT on selling bonus and right shares has to be calculated with face value as the base rate."
"The new decision – announced in the budget for the next fiscal year 2018-19 – is irrational decision, which can never be implemented because investors will not pay capital gains tax when there is no capital gain," according to Nepal Investors Forum.
Earlier, the government used to charge 5 per cent CGT on trading bonus and rights shares in the secondary market. With the increase in the CGT to 7.5 per cent through the federal budget 2018-19 on May 29, the tax administration had also changed the CGT calculation method. Prior to the enforcement of the new rule, CGT used to be levied on the income made from the difference in actual price of shares traded and adjusted base price of stocks. Adjusted base price of the stock means the price of stock immediately before book closure plus the value of shares received from rights and bonus divided by the number of shares.
The investors had been protesting against the IRD circular that imposed CGT on difference between the actual price of shares traded and base price of bonus and rights shares that is Rs 100 per unit share.
The share market has witnessed a large sell off on Sunday as soon as the IRD issued the circular levying 7.5 per cent CGT on the difference of actual price of share traded and its base price. On Monday, the investors hold discussion with the government asking the government o take back the circular.
But their discussion ended inconclusively forcing the investors to not to do any transaction yesterday, though the market was open for trading. Yesterday, the ministry has also formed a committee led by joint secretary at the Economic Policy Analysis Division Uttar Kumar Khatri to examine the revision in CGT calculation and suggest a solution.
Yesterday witnessed not a single transaction in the share market – for the second time in two years – in a year after VAT on brokers' commission row, which has been eliminated by the budget.
The protest continued today as well and the investors did not do any transaction during the first half of the trading hours.
The benchmark Nepse index ended 13.91 points higher to close at 1,282.75 points even in the second half – one-and-a-half hour transaction – recording turnover of Rs 238 million.
However, the investors are still under pressure as they do not know what will happen after 15 days. The seven-member task force led by Khatri – including representatives from the IRD, Department of Revenue Investigation, Securities Board of Nepal, Nepse and CDS and Clearing, and a capital market expert as members – will submit a report in 15 days. "Based on the study report, the ministry will plan the next move from the next fiscal year,” Khatri added. "After mid-July, the government will decide a formula based on the recommendations of a task force."

Trading, corporate activities slow down

Though the government has no clear idea that trading and corporate activities have been slowed down or tax evasion has been increased – in the first 2 months of the current fiscal year – as a result the government failed to meet the revenue mobilisation target by over Rs 1 billion.
The Inland Revenue Department (IRD) has missed the revenue mobilisation target due to a slowdown in income tax collection and value added tax (VAT).
According to the department, it fell short by 4 per cent as the government was able to mobilise Rs 35.27 billion against the target of Rs 36.67 billion in income tax.
The department has been able to mobilise Rs 14.23 billion in income tax, which is 92 per cent of the target of Rs 15.46 billion. Corporate profit tax, remuneration tax and investment tax are the major sub-headings of income tax that the department collects as direct tax.
IRD spokesperson Yagya Prasad Dhungel said that the drop in income tax collection was a usual trend in the first quarter of the fiscal year, as a majority of taxpayers will not have filed their tax returns during this time.
Taxpayers need to declare and submit tentative tax returns in advance to the department.
Likewise, the department fell short of the VAT also. It has been able to mobilise Rs 12.90 billion achieving only 97 per cent of the target.
An increase in the number of cases of tax evasion recently had led to the drop in VAT collection, the department suspects. Proliferating use of counterfeit excise duty stickers and growing practice of not issuing VAT bills have led to slow revenue collection, though the department has however intensified market inspection from the past month.
The department has fined a total of 600 taxpayers for not paying their taxes on time. Likewise, it has started scrutinising 21 large taxpayers, who are suspected to have cheated the government by evading tax. The department has also instructed the concerned taxpayers to maintain updated transaction records and issue a VAT bill while making a sale.
However, excise duty collection exceeded the target. The department has been able to mobilise Rs 7.73 billion against the target of Rs 7.36 billion in the first two months of the current fiscal year.
Likewise, the department has also missed the education service tax and health service tax targets. The department has mobilised Rs 156.6 million in education service tax against the target of Rs 177.95 million and Rs 250.4 million in health service tax compared to the target of Rs 343.01 million.
The government has set a target of moblising Rs 299.91 billion through IRD in the current fiscal year.
Even as the tax authority was unable to meet the target for the first two months of the current fiscal year, the amount was an increase of 22 per cent against the same period of last fiscal year. Tax mobilisation under income tax increased by 17 per cent, VAT by 23 per cent, excise duty by 30 per cent, education service tax by 13 per cent and health service tax by 22 per cent in the first two months compared to the same period of the last fiscal year.

Two months’ revenue mobilisation
Title – Amount – Achievement
Income Tax – Rs 14.23bn – 92pc
VAT – Rs 12.90bn – 97pc
Excise Duty – Rs 7.73bn – 105pc
Health Service Tax – Rs 250m – 88pc
Education Service Tax – Rs 156.58m – 73pc

Regulators keep mum, as stock brokers halt share trading

The weakness of the regulators made the investors bleed millions today as the stock brokers halted the share trading to protest against the Inland Revenue Department's (IRD) directives to register themselves under value added tax (VAT) regime.
Both the regulator – front line regulator Nepal Stock Exchange (Nepse) and capital market regulator Securities Board of Nepal (Sebon) – remained mute spectator despite stock brokers' anti-market practice.
Stock Brokers Association of Nepal (Sban) claimed that the stock trading would not start until the regulator clarifies on the provision regarding the payment of VAT while making transactions in the securities market.
In its recent letter to two brokerage firms, the IRD had asked them to clear their VAT overdue of last four years following assessment of their tax liabilities, fine and accrued interest. The IRD recently carried out VAT assessment of two brokerage firms, determined the tax liabilities for them and ordered them to get registered for VAT. The stockbrokers have been given 15 days to comply.
Inland Revenue Office sent letters to Investment Management asking to clear dues of Rs15 million, and  Sundhara Securities to file VAT amount of Rs 6 million. The tax offices are writing to other 48 stockbrokers soon.
President of the association Priya Raj Regmi said that brokerage firms had not so far collected VAT from clients therefore they could not file the overdue VAT as determined by the IRD. "We have been undergoing through full audit regularly," he said, adding that VAT has never been an issue so far. "Theoretically, it's the consumers who have to pay VAT. Yet, there is policy ambiguity and uncertainty over the VAT."
"Since the IRD has ordered only these two firms to get registered for VAT, they have to issue VAT bill for each transaction from tomorrow if there is trading," he added. "If they will issue VAT, what other brokerage firms are going to do? There is a lot of uncertainty and lack of policy clarity whether to issue VAT bill or not or who will have the liability for VAT. So brokers will not carry out trading until this policy uncertainty is addressed."
Issuing a statement today, the association said that the transactions were ‘automatically halted’ as there has been policy uncertainty and practical difficulty over the tax policy in the wake of taxpayer service offices' decision to determine VAT and instruction to register themselves for VAT.
Arguing that VAT is not its members’ liability, the association – of 58 brokerage firms – said trading of shares in the secondary market will be halted until the issue is resolved and the policy uncertainty over VAT is addressed.
Though the officials of Sebon and brokers' association sat for talks to find a way out to the dispute, the meeting ended inconclusively prompting the stock brokers to halt the share trading, which had left share investors disappointed.
The brokers halting the market went to the Nepse – the front line regulator – before 11:00 am, the opening time for the share market.
Past President of the association Narendra Raj Sijapati said they were compelled to halt the transactions as they were facing a dilemma on how to impose VAT on investors. "The law has not allowed us to issue the physical invoice," he said, adding that there is no system developed in the software to impose VAT amount from the investors.
The association has claimed that the government is yet to clarify on the payment of VAT for past business, which according to them is not acceptable for it. It also warned to halt transactions for an indefinite period, if the government did not roll back its plan.
However, the government has been doing homework since last year to bring stockbrokers in the tax net. However, it has failed after stockbrokers' protest.
 The government is considering imposing 13 per cent VAT on the stockbrokers’ commission amount. However, the stockbrokers have been reluctant to implement government plan saying that it was inappropriate to charge VAT on the commission as they had to share certain portion of the commission with Nepse and Sebon.
The stockbrokers have been charging 0.35 per cent to 0.6 per cent commission from investors. "Out of the commission, stockbrokers have to pay 20 per cent to Nepse and 15 percent is deducted as Tax Deducted at Source (TDS). Likewise, stockbrokers need to pay 0.6 per cent of their commission amount annually to Sebon as levy charge.
If the government imposes VAT, the brokers will be compelled to pass on the VAT amount to their client, adding extra burden to the investors, according to the association.

IT sector’s contribution to state coffer growing

Contribution of the Information Technology (IT) industry to the state coffer has jumped by eight times over the past six years, according to the Inland Revenue Department (IRD).
According to the department, IT industry contributed Rs 15.1 billion to the state coffer in the fiscal year 2013-14, compared to Rs 2.3 billion six years ago in fiscal year 2009-10.
The IT industry contributed Rs 14.4 billion – including both VAT and non-VAT – in the first 10 months of Fiscal Year 2014-15. Contribution from IT sector is estimated to exceed Rs 16 billion in the fiscal year 2014-15,  a growth of eight times in just six years.
Despite low registration of IT-based companies, according to the department, the contribution of the IT industry is very encouraging.
However, president of Computer Association of Nepal (CAN) Federation Binod Dhakal said that the government should encourage IT industries not only to increase revenue but also to create more jobs. "We can control exodus of IT professionals, if the government promotes IT sector, as there is enough space for youth in this sector," he added.
Similarly, president of F1Soft Biswas Dhakal said that the government should help IT industry grow so that it can contribute more to the state coffer. "Despite government's apathy, the IT industry is contributing large amount of money to the state coffer," he said, urging the government to allocate a special area for IT industries with uninterrupted power supply. "It will help make IT sector one of the largest sources of income generation, apart from employment generation," he said, adding that it will also help retain IT professionals in the country.
IT-related businesses have started being formal lately with due registration that has also expanded tax base though the volume of transactions is still very small. Four universities, more than 62 colleges, over 318 software and hardware companies, ISPs, cyber net, web-design, hosting and registration, IT enabled services, and networking services providers have joined the tax net, data shows.
But there are no customs records documenting the import and export of software statistics. As import and export of software is carried out electronically, these activities may be missed from the national accounts.
The World Bank Study on IT and IT-Enabled Services Industry in Nepal conducted in 2010 showed Nepal's software export was worth $10-15 million in 2007. The study also estimated that Nepal's export revenue should be about $1.1 billion, with the industry employing up to 40,000 professionals. The estimate is almost 100 times the formal revenue.
According to IRD, more than 83,400 IT-based companies are in the tax net but only around 4,000 have been paying regular taxes.

Government to act tough against 'tax invaders'

Finance Minister Shankar Prasad Koirala today reiterated that the government is not going to extend the deadline to clear outstanding tax dues due to mismatch.

"The government will move ahead according to law of land," he said, adding that the deadline has that has been extended by a month till mid-January – on traders request is coming to an end and would not be extended this time.

According to government's offer, the taxpayers would get rebate, if they clear outstanding dues within January 15.

Those failing to clear dues by January 15 will face the music, he said addressing an interaction with regulatory bodies, here today.

Stressing the need for mutual cooperation, coordination and collaboration among tax payers, regulatory agencies and revenue administration to boost revenue mobilisation, he said that the taxpayers ability also has to be enhanced. "Strong regulatory authority would support to strengthen government."

Finance secretary Shanta Raj Subedi, on the occasion, showed serious concern over low involvement in tax net. "Only a few professionals have come under the tax net as only around 15,000 professionals are paying taxes – far below the government's expectation of 50,000," he said, adding that the government will launch aggressive campaign to recover outstanding dues from tax defaulters after mid-January. "Likewise, only around 100 media and journalist have come under tax net, which is also serious."

The private sector asked for incentives, but did not respond it as it should have been after the government brought the scheme, Subedi added.

The regulatory authorities should be stronger, said chief of Revenue Administration Division at the Ministry of Finance (MoF) Rajan Khanal, on the occasion. He also asked regulator to be alert as they can help government mobilise revenue.

“Around 33 per cent of business firms are operating without registering with the regulatory authorities,” informed director general of the Inland Revenue Department (IRD) Tanka Mani Sharma, expressing concern over the growing tendency of not registering and renewing firms.

The Federation of Nepalese Chambers of Commerce and Industry (FNCCI) is encouraging businesses to take advantage from the government offer, said vice president of FNCCI Pashupati Murarka.