Tax is now a major source of annual revenue in Nepal. Data shows, the number of large taxpayers has presently touched 722. At the present rate of business expansion, MoF has estimated it to rise to 1,000 soon.
AIN Chairperson Ashutosh Tiwari also made a presentation on INGOs’ concerns regarding Tax and Vat issues. With an objective to discuss taxes, the Inland Revenue Department has been holding the discussions with several stakeholders. This was one of them.
Supported by GiZ, altogether 40 INGOs and 70 NGOs had attended the meeting along with officials from the Ministry of Finance, SWC, NGO Federation, IRD Officials and experts.
According to a paper presented by Madhu Kumar Marashini, deputy director general of the department, 24427 NGOs and 291 INGOs registered in PAN in IT and 776 NGOs and 11 INGOs registered with PAN/ VAT 776. There are a total PAN in IT at 24718 and PAN VAT at 787.
According to Marashini, NGOs paid Rs. 279.91 million as income tax, Rs. 279.91, Rs. 43.43 million as VAT and Rs. 68.68 million as TDS 68.68. Similarly, INGOs paid Rs. 227.89 as income tax, Rs. 1.53 million as VAT and Rs. 23.59 million as TDS.
Director General of Inland Revenue Department (IRD) Tanka Mani Sharma said that the government was marking the current fiscal year 2012/13 as Tax System Reforms Year.
“We have already worked out numerous programs, laying a strong emphasis on making taxpayers aware about the prevailing tax law and system,” he stated. Under the programs, he said the IRD will launch education, information exchange, communication and services related campaigns targeting the taxpayers.
All Inland Revenue Offices will together organize a total of 1,000 such awareness campaigns, he said. Sharma further informed that the IRD has set a target to open tax office or taxpayers´ service center in all 75 districts of the country, so that taxpayers need not travel out of the district to file taxes and settle tax liability.