150 businessmen declare stock

Kathmandu, February 12:

On the last day for declaring stock of businesspersons as per the government announcement through Finance Ordinance, only 150 businesspersons have declared their stock until 4 pm.

As per the recently released Ordinance, nine per cent Value Added Tax (VAT) is being imposed on the stocks thus declared by today. Government has strictly ordered the businesspersons to declare the stock honestly and in time or face ‘strong action’.

Talking to The Himalayan Times Rana Bahadur Shrestha, acting director general of the Inland Revenue Department (IRD) today informed that about 150 businesspersons so far have declared their stocks worth Rs 35 million. “More are in the pipeline,” he informed.

Despite government’s target to collect Rs 8 billion from ‘stock declaration’, the total collection is yet to be confirmed. When asked what next move the government will make, Shrestha replied that the government will take action.

However, the businesspersons do not agree on the government’s move. Surendra Bir Malakar, vice-president of Nepal Chamber of Commerce (NCC) said that the government has failed to take the private sector into confidence to recover billions of rupees from stock declaration that has created clumsy environment in the revenue front. He demanded for the ‘time extension’ to declare stock and maintain the same three per cent VAT rate instead of present nine per cent.

Malakar accused the government of adjusting customs tariff reduction through stock declaration “which is not fair”. “The government can recover Rs 8 billion from stock declaration, but it has to take practical steps with flexible rules,” he suggested. He said that majority of businesspersons have yet to declare their stock and the government’s action would do ‘nothing’. Malakar was of the view that the business sector is always ready to support the government but ‘friendliness’ is required to achieve the target.