Exporters protest VAT rate increment
Himalayan News Service
Kathmandu, January 16:
Export Council of Nepal (ECN) has protested the hike in Value Added Tax (VAT) rate. The government has in the ordinance budget hiked the VAT rate by three per cent and made it 13 per cent, which would push the export-oriented industries into deep troubles as they have to pay huge taxes while purchasing goods needed for industry, ECN stated in a press release issued here today.
“Despite the implementation of VAT that is still very weak the increment would weaken the business confidence,” it stated. Export oriented industries do not have to register in VAT but while purchasing goods, the tax has to be paid which is not bearable, further stated the release. Before the announcement of VAT rate hike, the government had assured to expand tax net but the government did not keep its promise. While discussing with the exporters, the government had assured to free transaction of export worth Rs 100, 000, boost the sector by adopting effective measures, among others but the government failed to do so, stated the release.
Despite the concept of Export Trading House, the government has failed to take initiative in this regard, exporters said in their statement.