Province 5 local units collecting various taxes illegally

Published On: October 11, 2018 07:23 AM NPT By: Devendra Basnet

DANG, Oct 11: Tulsipur sub-metropolis of Dang district is currently facing charges at High Court for imposing taxes on various export items. Businessmen and traders had filed a petition at the court challenging the sub-metropolis’ decision to hike taxes.

In response to the petition, the high court issued an interim order to the sub-metropolis to stay the decision to impose export tax on bricks and chicken. While the sub-metropolis has respected the court’s order, it still collects export taxes from other items, according to Lalit Gharti, financial officer of the sub-metropolis.

While export taxes imposed by Tulsipur are actually against the spirit of the present constitution, the sub-metropolis is also facing court case for disobeying the provincial government.

The government of Province 5 had instructed all its local units not to impose taxes on export items. The province’s Minister for Physical Planning and Infrastructure Development Baijanath Chaudhary confirmed that all local units have been instructed not to tax export items.

“Some local units have rescinded export taxes following our instruction. But we have received complaints that some local units have not followed the instruction,” said the minister. 

Tulsipur is one of the local units disobeying the instruction. It prepared an action plan regarding export taxes and arbitrarily imposed taxes on export items.

Although the sub-metropolis called off export tax on bricks and chicken, it is still levying taxes on the export of several other items disregarding the instruction of the provincial government.

Ghorahi sub-metropolis is another local unit disobeying the instruction. Along with export taxes, Ghorahi has also disobeyed the provincial government’s instruction not to collect road tax from vehicles.

Local Government Operation Act 2074 allows the local units to levy tax on roads if the roads were constructed by the local units. But so far, none of the local units have constructed roads on their own.

The provincial government has also instructed elected representatives to eliminate double taxation. But big local units like Tulsipur and Gorahi are still disregarding the provincial government.

Minister Chaudhary, who is also the spokesperson of the provincial government, said the government would monitor if their instructions are being followed by local units.


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