EST collection very low
EST collection very low
Published: 04:06 am Jul 09, 2009
KATHMANDU: Inland Reven e Office (IRO) area no. 3, Kathmandu, has collected Rs 3.41 million revenue under Education Service Tax (EST) from 274 schools and colleges of the area –23.71 per cent of the intended target of Rs 14.4 million. The Maoist-led government introduced the tax in the budget of fiscal year 2008-09. “Except for EST, we have achieved the target,” said a tax officer at the monitoring section. EST has become a most controversial tax, with private schools and colleges openly protesting against it. “We expect only 30 per cent schools and colleges are in the EST net,” he said. According to chief tax officer (CTO) Devi Das Koirala, the office aims to generate other taxes as per target. IRO area no. 3 is generating income tax, value added tax (VAT) and excise duty over and above the target. It obtained income tax Rs 1.62 billion till June 14, which is 124.67 per cent of the target. The office collected Rs 618 million VAT (78.01 per cent) and Rs 723 million (106.62 per cent) excise duty in the eleven month of the fiscal year. The IRO successfully solved 21 cases of illegal liquor and made 237 emergency monitoring in revenue fraud. Around 7,209 individual and companies are registered in the office in the current fiscal year whereas VAT registration is limited to 1,353. The use of electronic media is increasing in the IRO. About 2,923 firms have filed e-TDS and 9,893 have presented their VAT files through online service of the Inland Revenue Department (IRD), 110.3 per cent and 216.81 per cent of the target, respectively. IRO area no 3 covers Rasuwa, Nuwakot and Dhading districts apart from the northern and western part of Kathmandu district.