Majority of Bhatapur brick kilns evading VAT

KATHMANDU, Jan. 3: Majority of the brick kilns in Bhaktapur were found involved in evading VAT. According to the Value Added Tax Act 2052, person or company making transaction of Rs. 2 million plus should register the business organization in the VAT office.



Of the 74 brick kilns in the district, Jagate based Brick and Tile Company alone has registered the company in the VAT office, said Dipak Kharel, Chief Revenue Officer of the Inland Revenue Office, Bhaktapur.[break]



A source in the Revenue Office claimed though the office urged the brick entrepreneurs to register their companies in VAT, they invested tens of million rupees in their business and make the transaction more than Rs. 2 millions just by limiting them in Pan Number.



The office urged the entrepreneurs to register their companies in VAT time and again, however, they delayed for the registration but assured to register them in VAT, he said.



The brick kilns supply their products (local bricks) at Rs. 7,500 to Rs. 8,000 per thousand, informed Hanuman Brick Industry, Bhaktapur. The entrepreneurs has to invest around Rs. 50 million to establish a brick industry, calimed an entrepreneur.

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