Kathmandu, October 25

Traders have been ignoring the instruction of the Inland Revenue Department (IRD), which has urged the traders, hotels and restaurants to not charge extra 13 per cent Value Added Tax (VAT) on top of the tag price, sales price or menu price.

Some restaurants in prime locations of the Capital have been advertising menu prices, which reportedly do not include the taxes. Hence, consumers have to actually pay more than the price that has been advertised.

IRD, a month back, had issued a notice to the traders and hotels and restaurants to publish rates of goods and services that are inclusive of all taxes, however, instruction has been widely ignored. The IRD has urged the traders to follow the instruction so that consumers do not have to pay an additional amount on top of tag price, sales price or menu price.

Talking to The Himalayan Times, Bishnu Nepal, director general of IRD, said that there have been complaints registered at tax offices regarding the issue. “We will strictly monitor the market and force the traders to abide by the instruction of the IRD,” he stated.

It is reported that the traders submit VAT to the tax office based on the published rate, however, they charge the consumers an additional 13 per cent on the published rate. IRD officials have said that this provision will be beneficial for consumers and also help the tax offices for effective calculation of VAT.