10 percent VAT rebate on digital payments scheme launched in capital
February 11, 2020 04:42 PM NPT
By: Kunga Hyolmo
KATHMANDU, Feb 11: The Inland Revenue Department on Tuesday introduced a new system, according to which, the consumers who make purchases through electronic means would be able to get a 10 percent rebate on the 13 percent VAT they have paid to the government.
Amid a program, Finance Minister Yubaraj Khatiwada unveiled the new system in the capital. He said that the country's revenue collection is expected to improve through the use of advance technology.
The new system has come into implementation in line with the fiscal year budget (2019-20), officials at the IRD said.
According to IRD, the sellers or suppliers will be returning 10 percent of the VAT to the respective bank accounts of the consumers who purchase goods or services through electronic means.
IRD Director General Binod Bahadur Kunwar said that the VAT rebate scheme is part the government’s rigorous efforts to promote the digital payment system and cash-less society.