Govt recovers Rs 125.85m in taxes
Himalayan News Service
Kathmandu, April 20:
The Department of Revenue Investigation (DRI) has been able to recover revenues worth Rs 125,857,296 which were being evaded by various firms and traders in the form of various taxes, during the first nine months of the current fiscal year.
Following investigations by DRI, actions against evaders have been initiated by various authorities like Department of Custom and ministry of finance under the Customs Act. This has resulted in the outstanding recovery of evaded taxes.
DRI figures disclose that the revenue leakage has increased significantly during the period. According to the department, it initiated actions against various firms
and traders who have evaded revenues in the form of customs duty, value added tax (VAT), excise duty and illegal transactions in foreign currency.
During the last fiscal year, the total revenue recovered was Rs 30,617,943. The recovery during the first nine months of this fiscal has outstripped last fiscal year’s recovery by Rs 95,239,353.
According to DRI figures, tax evasion on account of customs duty alone stands at Rs 94,726,820 which constitutes over 70 per cent of the total revenue evaded during the period. Last year evasion on account of customs duty was to the tune of Rs 9,486,318.
Similarly, the amount of VAT evasion has also increased hugely. The total amount of VAT evaded during this period comes to Rs 12,142,679, whereas the figure stood at Rs 6,829,683 during the last fiscal year.
DRI has forwarded these cases to concerned Inland Revenue Offices for further action.
The department collected Rs 10,953,752 as bail amount from various firms and traders accused of evading excise duty on liquor trading. The confiscated goods were first sent to the concerned Inland Revenue Offices and later freed, following the payment the bail amounts.
However, illegal transactions in foreign currency has dropped during this period, as compared to the last fiscal. DRI filed cases against illegal transactions in foreign currency worth Rs 8,034,045 during the period, whereas the figure during last fiscal stood at Rs 14,301,942.
According to DRI officials, confiscated contrabands entered into the country usually via Mahendranagar and Dhangadhi customs points. Textile and garment products and hardware goods comprise the majority of confiscated illegal imports.
“The department has strengthened its activities at customs points as well as in the domestic markets,” said Madhav Prasad Dhakal, director general at DRI.
“DRI alone cannot completely bring down revenue evasion. Support from all concerned authorities, as well as the public, will play a vital role in bringing tax evaders to the book,” he said.