IRD extends deadline for VAT until May 7

Published On: April 6, 2020 10:52 AM NPT By: Republica  | @RepublicaNepal

KATHMANDU, April 7: The Inland Revenue Department (IRD) has extended the deadline to file value-added tax (VAT) dues till May 7.

The cabinet meeting on March 31 decided to extend the tax filing deadline. The department through issuing a public notice on Sunday has extended the deadline for filing VAT of mid-November through mid-March and of the last two months. The taxpayers are supposed to submit the details and tax filing by the approaching end of the third quarter that falls on April 13.

Likewise, the taxpayers have also been given the extension to file details of excise duty of mid-February to mid-March till May 7. The extended date is also applicable for filing education service fee and telecommunication service fee.

Similarly, the department has provisioned to provide VAT returns by mid-May depending on the enforcement period of the lockdown. This deadline will be valid also for the taxpayers to file revised details of their income tax. The government has enforced the lockdown since the past two weeks and is likely to extend the period further due to the increasing cases of COVID-19 in the country.

With the lockdown at place, most of the economic activities have come to a halt while the taxpayers are also having a hard time to generate cash flow to clear their tax dues. Similarly, the government has also been struggling to collect the necessary funds in revenue.

The Financial Comptroller General Office (FCGO) record shows that the government as of Saturday, collected revenue worth Rs 573.21 billion, which is 51.55% of the targeted revenue of Rs 1.11 trillion for this fiscal year. According to the FCGO, the government is able to collect revenue of only Rs 10 billion in the past two weeks since the government enforced the lockdown on March 24. With almost three months left for the fiscal year to end, the government is still to collect around Rs 539 billion to meet its target.

Last week, the government announced relief measures targeting to extend support to poor and vulnerable citizens hit by Covid-19 and the government lockdown as well as measures to support the businesses and the economy from the impact of the pandemic. In addition to extending the deadline for taxpayers, the government has also provisioned that the companies which donate to the government's Coronavirus Control and Treatment Fund will also be allowed to deduct such donation as expenses for tax calculation purposes.

Apart from taking a flexible policy in taxation, the government has also extended the deadline to submit the report and other details by companies to the Office of Company Registrar until mid-May. Even if driving licenses, route permits and other licenses have expired during the lockdown period, they can be renewed by mid-May without any penalty or fines.

Leave A Comment