KATHMANDU, July 31: Nepal Rastra Bank (NRB) has asked licensed payment service providers to make the necessary arrangements for the implementation of the Taxpayer Reward Scheme 2083.
In a public notice, the central bank instructed payment institutions to inform all customers that the scheme will come into effect on August 6. Customers should also be notified if they need to update their mobile payment apps to participate in the programme, according to NRB Executive Director Nishchal Adhikari.
NRB has also asked payment service providers to include a separate Frequently Asked Questions (FAQ) section on the Taxpayer Reward Scheme in their mobile applications. They have been instructed to begin providing information about the programme from August 1.
The government has introduced the scheme to reward taxpayers through regular cash prizes. Citizens registered under the Value Added Tax (VAT) and Permanent Account Number (PAN) systems who obtain genuine invoices for purchases worth more than Rs 100, whether paid in cash or electronically, will be eligible to participate.
To qualify, consumers must collect original invoices when buying goods or paying more than Rs 100 at hotels and restaurants.
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Initially, winners will be selected on the 1st and 16th of every month. The Ministry of Finance has already brought the Taxpayer Reward Scheme Operational Procedure 2083 into effect.
The procedure was issued under the authority granted by the Financial Procedures and Fiscal Responsibility Act, 2019. It aims to ensure the programme is implemented in a simple, efficient and transparent manner.
According to the procedure, the scheme seeks to encourage consumers to collect invoices, improve tax compliance and promote proper recording of commercial transactions.
The Inland Revenue Department will operate the programme and may appoint an event organizer or assign management responsibilities as needed.
Under the scheme, one consumer will receive a bumper prize of Rs 1 million every fortnight. In addition, one consumer will be selected each day to receive Rs 133,333.
The names of winners will be published on the Inland Revenue Department's website and social media platforms. Prize money will be subject to a 25 percent withholding tax under the Income Tax Act.
Invoices issued for business purchases, those issued in the name of government agencies or public institutions, and bills for telephone, internet, electricity, transport services and airline tickets will not be eligible. Invoices issued to individuals without a PAN will also not qualify.
The government introduced the programme through the current fiscal year's budget to recognize taxpayers, encourage people to pay taxes and promote the habit of collecting invoices.
Purchases made through electronic payments from the first to the last day of each month, along with invoices entered into the system during that period, will be included in that month's draw, subject to the approved annual budget.
Each eligible invoice and electronic payment will generate one reward ticket. An invoice entered into the system will be eligible to participate only once.
Eligible invoices must include the invoice number, the seller's PAN, the date of issue, the total amount, the payment method, and the buyer's name and mobile number. The system will automatically verify the information before including eligible invoices and electronic payments in the draw.
The procedure also allows senior government officials, well known personalities, representatives of various organizations and media personnel to witness the winner selection process.
Winners will be notified through their registered mobile number or email. The Inland Revenue Department will deposit the prize money directly into the winners' bank accounts. Any prize left unclaimed within the prescribed period will be transferred to the Prime Minister's Disaster Relief Fund.
