Tax avoidance on the rise in Kailali

Published On: November 20, 2017 06:00 AM NPT By: Yogesh Rawal

TIKAPUR, Nov 20: Thousands of individuals and businesses in Kailali district are not paying taxes regularly, according to Inland Revenue Office (IRO), Dhangadhi. 

Though around 38,000 businesses have received Permanent Account Number (PAN) from the office, only around 24,000 have furnished their income details. This means around 14,000 traders and businesspersons are not paying taxes.

Speaking at a program organized on the occasion of 6th National Tax Day, Krishna Bahadur Bohara, chief tax officer of IRO Dhangadhi, expressed dissatisfaction over the growing trend of tax avoidance. The program was organized jointly by IRO Dhangadhi and Tikapur Chamber of Commerce and Industries (TCCI). 

The office also started a program entitled Tax Week to raise awareness on tax compliance.

“Around 14,000 traders and businessmen are not paying taxes regularly. If their business is not functioning, they should scrap their PAN. But they cannot avoid taxes,” Bohara added.

He also said that many traders and businessmen were not maintaining their accounts regularly, and not verifying their sale and purchase books.

Bohara also reminded traders that they cannot sell food products and tobacco and well as liquors from the same shop. “Everyone should abide by the government rules and regulations,” he added.

Similarly, Surendra Kishor Giri, vice president of TCCI, said it would be impractical to ask a small grocery shop to sell food and tobacco as well as liquors separately. Similarly, Birmanjan Batala, president of Hotel Entrepreneurs Association, Kailali, requested IRO Dhangadhi to create environment conducive for traders to sell alcohol and tobacco products.

Officials of IRO Dhangadhi said that they would hold interactions in parts of the district to encourage traders, cooperatives and construction entrepreneurs for tax compliance. The office plans to honor best taxpayers in the district on Thursday during a ceremony that would be organized to mark conclusion of the Tax Week. 

Inland Revenue Department (IRD) and its units all over the country have been celebrating the first week of Nepali month of Mangsir as Tax Week since 2012/13.

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