VAT arrears at IRO Pokhara touch Rs 70m

POKHARA, June 29: Unsettled value added tax (VAT) accounts at Inland Revenue Office Pokhara have touched about Rs 70 million, as the leading businesses in the city such as five start hotels, gas companies and cement factories themselves are reluctant to clear their basic tax liability. [break]



IRO figures show that it has Rs 68 million in VAT arrears, which are to be realized from various taxpayers. Of them, about a dozen businesses owe the government a million rupee each. Likewise, 74 different firms have VAT dues ranging from Rs 100,000 to Rs 900,000.



IRO chief Bishwaraj Pandey said that the office was taking all possible steps to realize the dues. “We are applying carrot and stick approach to collect the amount,” he told myrepublica.com.



Among the leading defaulters, Fulbari, a five star hotel, has the maximum VAT due of Rs 3.65 million to pay to the office. Citing losses since the commencement of its service, the hotel has not paid VAT till now.



Likewise, Everest Noodles has VAT liability of Rs 3.04 million to pay to the office. Shakti Gas also has Rs 2.87 million, Griha Laxmi has Rs 1.67 million and Pancha Ratna Cement has Rs 1.56 million to pay to the IRO.



Bhagawati Malika Construction too has not paid VAT of Rs 1.35 million. Santoshi Constructions Service (JV technical Services Group) has VAT due worth Rs 1.33 million, while Hotel Crystal has Rs 1.02 million in VAT to clear.



Pandey said that the office has taken action against the companies that adamantly refused to clear their liability, despite its repeated warnings.



Citing that the actions were still on against the companies who wilfully defaulted on the payment of VAT, Pandey stated that the IRO has padlocked the accounts section of Hotel Crystal after it paid no heed to the office´s warnings.



“Refusing to transfer 13 percent VAT collected from consumers to the state treasury is a serious crime,” said Pandey.



Meanwhile, Fulbari Hotel, the largest defaulter here, has informed the office that it will not be able clear existing VAT due at one go. Instead, it has proposed to settle it in installments.



Shiva Jung Thapa, manager of the hotel said that the hotel was preparing to clear VAT as the business of the hotel improved recently.



IRO in Pokhara has expedited action against tax evaders and defaulters after the government doubled its VAT collection target for the current fiscal year. So far, the office has mobilized mere Rs 183.72 million in VAT, which is less than the target.

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