As part of the undergoing five-year Tax Reform Plan, taxpayers have already started submitting their income details through online portal of Inland Revenue Department (IRD). Talking to Republica, Revenue Secretary Rajan Khanal said they planned to implement full-fledged online tax payment system by the end of 2016/17.
Around 85 percent of taxpayers are already submitting their income details through IRD’s online portal. “We will introduce the system of receiving payment order through online payment system by calculating tax amount through online tax calculator,” said Khanal.
Speaking at a program organized on the occasion of 4th National Tax Day in Kathmandu on Tuesday, Khanal also said online tax payment system will increase tax compliance. “Taxpayers can pay their tax through online payment system by using their digital signature,” he added.
To introduce online payment system, there should be synchronization between all bank and financial institutions (BFIs) and Nepal Rastra Bank (NRB), Khanal said. “There should also be real time reporting to Financial Comptroller General Office (FCGO) and validation by it,” Sharma added.
He told Republica that the finance ministry has already started preparing real time database of government’s expenditure.
“Progress made by IRD for implementation of online tax payment system is praiseworthy. Now, NRB, BFIs and FCGO should make necessary preparations accordingly,” said Khanal.
Under online tax payment system, a taxpayer will first make tax payment order from his home/office. Banks will then receive the order and report information to NRB simultaneously. It is also believed that implementation of online tax payment system will control tax evasion.
Speaking at the program, Dr Upendra Devkota, who was also felicitated as the highest taxpayers among the medical doctors, it would be easier for taxpayers if tax is collected automatically from their bank accounts.
At the program, IRD felicitated three dozen individuals and firms as the highest taxpayers in different groups. They were felicitated on the basis of tax payments of Fiscal Year 2013/14.
Telecom operator Ncell became the highest income taxpayer of 2013/14. Similarly, Nepal Telecom was the highest VAT payer during the review year. Similarly, Pragun Rajbhandari, managing director of Himalayan Distillery, became the highest income tax payer among individuals.
Meanwhile, a procession was taken out on Tuesday morning to celebrate 4th National Tax Day.
Online revenue payment starts in Kalikot
