“The amount was assessed based on the volume of value added tax (VAT) and excise duty it evaded,” said Surya Prasad Sedhai, chief investigation officer at Pathalaiya RIO. [break]He told Republica that the office has already informed about its assessment to the company and instructed it to settle that sooner.
If the company does not comply, he said the office will take actions as per the law.
The RIO team had raided the office and godown of the MPL three months ago, assessed its stock, and taken its stock book, sales book and other documents in its control.
“The investigation found that there was a huge mismatch between its stock, sales and taxes it was paying to the government,” said Sedhai. The company was mainly found to be evading VAT and excise duty.
MPL had been producing Gutkha in pouch and exporting to countries like India, Afghanistan and UAE.
After the Indian government imposed ban on production of Gutkha in plastic pouch, Gutkha manufacturing firms have mushroomed in the southern bordering areas across Nepal. There are four Gutkha and Pan Masala manufacturers in Birgunj alone.
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