“Show zero tolerance to VAT evasion and leave no stone unturned to take stringent action against individuals or firms found involved in the crime,” Karki said while instructing senior revenue officials at Inland Revenue Department (IRD) on Tuesday.
Karki also asked revenue officials to send reports about progress of investigation on VAT evasion to the constitution anti-graft body on regular basis.
He also directed the officials concerned to establish a mechanism to encourage issuance of sale invoices, end the existing trend of under-invoicing of goods, and conduct monitoring on regular basis. [break]
Karki also expressed dissatisfaction over the failure of revenue officials in exercising their authority. “Exercising the authority beyond the legally provisioned limit and with prejudice is unforgivable. But it will counted as an abuse of authority if anyone fails to exercise it when needed,” Karki added. “We are bringing public post holders under our scanner to minutely analyze their activities and conducts in a bid to make them more responsible toward the society, people and the government.”
He also instructed civil servants not to challenge the Social Reforms Act 1976 that prohibits lavish spending. “CIAA, however, is ready to support the efforts made by civil servants with good intention,” he added.
Expressing dissatisfaction over the increasing use of discretionary power by officials, Karki said officials need to demonstrate similar treatment to all service seekers if there is a need to exercise such power.
Karki also directed revenue officials to bring high-income groups and professionals into the tax net with priority. “We have found that many neo-elites and high-earning professionals are not paying tax. Revenue officials must give emphasis on bringing them into tax net,” he added.
He also suggested to the officials to develop online system in tax administration so as to minimize personal contact between officials and tax payers. Stressing the need to take action against those who intentionally shy away from tax responsibility, Karki sought stringent action against them.
Rajan Khanal, chief of Revenue Management Division at the Ministry of Finance (MoF), highlighted the challenges that revenue officials are facing.
On the occasion, Tanka Mani Sharma, director general of IRD, informed Karki about the efforts being made by IRD in revenue mobilization, expansion of tax net and revenue investigation, among others.
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