Three-fourth of taxes will be collected from internal sources: FinMin
November 18, 2019 08:36 AM NPT
KATHMANDU, Nov 18: Minister for Finance Yuba Raj Khatiwada said the government was making needful preparations to mobilize three-fourths of total taxes from internal sources.
Speaking at an event organized on the occasion of 8th National Tax Day in Kathmandu on Sunday, Khatiwada said that the government was committed at increasing the share of internal resources even though it may be hard in the beginning. “But we will make amendment to tax policy and law,” he added.
Stating that the economy was in a transitional phase, Khatiwada said that business fraternity is now used to VCTS, PAN, and other ICT systems.
He also said Nepal had comparatively lower public debt in South Asian countries because our revenue collection has met some portions of expenses. “We accept the fact that confusion in tax policy exists, but we are determined to clear them as we move forward,” he said, adding: “All the tax compliances in the federal system regarding the financial aspects will be resolved within the current fiscal year and works will be done in such a way that business environment is not affected.”
Meanwhile, representatives from private sectors complained criticized imposition of high taxes, arguing that tax rates in Nepal is very high.
15 LARGEST TAXPAYERS FELICITATED
The government has felicitated 15 largest tax-paying companies, including an individual, for their contribution to government revenue in FY2018/19.
Siddhartha Shamsher JB Rana has become the highest individual taxpayer in the review year, while Surya Nepal Pvt Ltd became the highest taxpaying company. Similarly, Jagadamba Steels Pvt Ltd was the largest taxpayer among firms not related to tobacco-related products.
Likewise, Dabur Nepal Pvt Ltd was the highest taxpayer among importers.
Meanwhile, Annapurna Agro Industries Pvt Ltd (agriculture sector), Chhimek Laghubitta Bittiya Sanstha (finance company), Rastriya Banijya Bank (commercial bank) and Nepal Life Insurance Company (insurance company), Manipal Education and Medical Group (health and education sector), WorldLink Communication (ICT), Agni Incorporated (trade), Taragaon Regency Hotel Ltd (tourism) were recognized as highest taxpayers in their respective categories in the last fiscal year.
On the occasion, the finance minister also felicitated Kamana Sewa Bikas Bank for paying highest taxes among medium-level taxpayers, VF Services Pvt Ltd as the highest taxpayer under IRD’s jurisdiction, and Ghorahi Cement Industries for submitting VAT details on time.
The government has been felicitating companies and individuals on national tax day for the past few years to honor taxpayers and encourage tax compliance.