Entrepreneurs have opposed the government’s move to seek the sources of initial investments claiming that they were regularly paying various taxes from the time of the investment.
They are also demanding that the entrepreneurs should be allowed to evaluate their property on the basis of purchase prices of the time of investment and not on the basis of the prices on July 16, 2008, the cut off date set by the government.
“We are against the government’s step to seek sources of initial investment as entrepreneurs have already been paying taxes for their existing property,” said Kush Kumar Joshi, president of Federation of Nepalese Chambers of Commerce and Industry, after the meeting.
“There exists some confusion between both sides regarding the sources of income and investment,” added Joshi.
Both sides are still in dispute over extending the VDIS deadline. Businessmen want the deadline to be extended to April 12, but the government is against any extension of the deadline, which expires February 11.
“We are not in a position to extend the VDIS deadline beyond Feb 11, 2009,” said Krishna Hari Banskota, revenue secretary of the Ministry of Finance.
However, both sides have agreed to fix July 16, 2008 for the valuation of share prices.
Around Rs 550 million has been collected in taxes by Friday under the VDIS. The government had sent letters to 10,000 individuals and firms requesting them to declare their income. In a bid to widen the tax net, the government had first launched VDIS in 2001 when about Rs 620 million was collected in taxes.
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