3.17 million PAN cards issued so far

Published On: February 6, 2020 11:28 AM NPT By: Republica  | @RepublicaNepal

KATHMANDU, Feb 6: The Inland Revenue Department (IRD) has issued a total of 3.17 million PAN cards across the country as of mid-January. 

Data of the IRD shows that it added more than 800,000 taxpayers in the first six months of the current fiscal year. At the end of FY2018/19, IRD had issued 21.7 million such cards.

Binod Bahadur Kunwar, director general of IRD, said that tax offices across the country are busy issuing PAC cards after the government made such cards mandatory for all salaried workers from mid-July 2019.

According to the department, it issued 813,978 PAN cards over the first six months of the current fiscal year.

“The number of service seekers approaching our offices for PAN cards was overwhelming in the beginning. However, our offices are not much crowded these days,” Mukti Prasad Pandey, deputy director general at IRD, told Republica. "The management of the offices and quick service have lessened the crowd.” 

Of all the PAN cards issued, 1.32 million are business PAN (BPAN) and 1.84 million are personal PAN (PPAN) cards.

The government has made PAN mandatory for employees or workers earning any amount in the form of salary, wage, leave pay, commission, prize, bonus, or other facilities from any organization from the current fiscal year. According to the new provision, all employers are required to record tax deducted at source (TDS) in the respective accounts of their staffers from mid-July. To record the TDS the employees must have PAN. 

Individuals earning up to Rs 400,000 annually should pay 1% income tax and extra 10% for additional Rs 100,000. Similarly, married couples earning Rs 450,000 or less can jointly pay 1% and 10% for extra Rs 100,000.

According to IRD officials, application for PAN can be lodged online. 

"Most of the service seekers fill online form and visit the office afterward to collect their PAN card," said Pandey, adding that the online application system has improved service delivery.

The IRD issues PAN collectively if online forms of the employees of government offices, public entities, schools, universities, hospitals, non-governmental organizations, and industrial and business firms are submitted jointly. The IRD also provides on-site services if there is demand.

The government had introduced 'One Person, One PAN' policy for FY 2019/20. As per the policy, the IRD has been providing its services through 59 field offices – 38 Inland Revenue Offices, 19 Taxpayer Service Office, one Medium Level Tax Office, and one Large Taxpayer Office. 

Meanwhile, the number of taxpayers registering for value added tax (VAT) has reached 246,611 as of mid-January. Of the total VAT taxpayers, 34,142 got associated with VAT in the first six months of the current fiscal year.

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