FM gives the thumbs-down to NCC’s multiple VAT plea
KATHMANDU: Finance Minister Surendra Pandey has refused to bring the multiple Value Added Tax (VAT) proposed by the businessmen. “The current VAT system, capacity of the bureaucracy and enterpreneurs are some of the reasons for the difficulty in implementing the multiple VAT system,” Pandey told a delegation led by Nepal Chambers of Commerce (NCC) president Surendra Bir Malakar.
Pandey said that the multiple VAT system was not appropriate in the context of Nepal as business in Nepal has not been in accordance with the transaction cost and the problems faced in the billing system. In this context, Malakar said, “We are hopeful that the government would regulate the policies of expanding the horizon of tax system and thus increase revenue.” He added that the private sector would support the government in this matter.
“The government should categorise small enterpreneurs and set the tax system accordingly so as to minimize existing price hikes in daily use items,” said Malakar. Nepal Khadya Kirana Byawasahi Sangh president Krishna Man Shrestha and Retailers’ Association of Nepal president Pabitra Bajracharya jointly stated that the government should develop the policies of introducing taxes up to Rs 2,000, which is currently Rs 5,000 for small enterpreneurs doing annual business of Rs 1.5 million.
Among other issues, the exemption increment in the tax system for a couple, providing private companies the chance to sell fertilisers at subsidy, 30 per cent concession in selling local products, provision for Nepalese to invest in foreign countries, VAT consideration in food products were some of the issues discussed during the meeting between the NCC delegation members and minister Pandey.