Principally, the government announced VDIS with a view to give an opportunity to people to correct their past misbehavior of not paying tax. Many countries across the world have practiced similar schemes and one of Nepal´s next door neighbors has also done likewise time and again to bring more people within the tax ambiance. But what is also for sure is that VDIS is not meant to be a blanket amnesty for corrupt officials, smugglers and embezzlers. VDIS aims to correct tax-related anomalies by giving the general public a one-time opportunity to wipe the slate clean. Corruption and smuggling, however, are not just tax-related misdeeds. These are social evils and also constitute serious crime.
Hence, VDIS cannot bring amnesty to their perpetrators. myrepublica.com is with the CIAA when it says it won´t let miscreants who amassed huge assets through crime go scot free just because he/she paid 10 percent tax on those ill-gotten assets. However, we at myrepublica.com also understand that not many will respond to VDIS unless they are assured of amnesty for past tax default. It is quite okay for the government to promise it will accept taxpayers´ declarations under VDIS as submitted and will not investigate their income sources any further. The amnesty component comes as part and parcel of the VDIS scheme.
It is apparent that the latest controversy over VDIS has surfaced mainly because of the lack of dialogue and understanding between two organs of the government. While the Ministry of Finance must recognize and uphold the basic function of the CIAA, it must also not make promises to taxpayers that it cannot honor. Collecting tax does not mean letting criminals off the hook, but it must be seen to that the state recognizes and confers legality on the incomes that people disclose under the scheme. The CIAA, for its part, should also discuss the issue with the government and work out an understanding so that the government´s crucial aim of bringing more people into the tax net and mobilizing an additional Rs 1 billion in revenue is realized successfully. We urge the government to elaborate further on the scheme and end the present confusion.
Related story
Confusion in cockpit over runway
