Speaking to journalists at an interaction at Reporters´ Club, he said that the government must not give tax evaders any exemption by amending the existing laws. “VAT evasion is a financial crime and the authorities must not commit the mistake of sparing them by amending the laws,” Khanal said.[break]
He claimed Finance Minister Bharat Mohan Adhikari had never pressed him to give exemption to VAT evaders. He also refuted media reports that he tendered his resignation owing to differences with the minister over the issue.
“Though the minister had asked if the law was too strict, he was convinced with our opinion,” claimed Khanal. Khanal in a surprising move had tendered his resignation on Tuesday and left for his home district Palpa. He returned Kathmandu after visiting Parbat and Kaski districts. Khanal said he would not reassume his post at the ministry.
VAT has not been imposed on locally produced potatoes, onions a...