Nepal | July 16, 2019

IRD unveils 21-point Kathmandu Declaration

Aims to settle 80pc of arrears within current fiscal year

Himalayan News Service

Kathmandu, September 7

The Inland Revenue Department (IRD) has announced that it will take serious actions to recover outstanding taxes, including making public the names of taxpayers who refuse to clear their dues.

The IRD is also planning to settle 80 per cent of its arrears within the current fiscal year 2017-18.

The tax office is also planning to set up a laboratory in the department to check the quality of liquors. IRD said that it will also begin market inspection of liquors soon.

Unveiling the 21-point Kathmandu Declaration here today, the tax department also said that it plans to establish a bank counter in every tax office across the country. Likewise, it also plans to collect Rs 300 billion revenue through inland offices.

The department also said that it will evaluate the current five-year plan and also draft the second five-year plan to enhance the capacity of tax offices and its staffers.

According to the plan, the tax office will establish fully online system to receive the details submitted by the taxpayers, issue the tax settlement certificate and issue approval of details to taxpayers.

The IRD also plans to prepare advanced tax ruling (ATR) system on income tax and harmonise all the laws related to tax. Currently income tax act, value added tax act and excise act are in existence to implement the tax system of the country.

According to the Inland Revenue Department, it collected Rs 258.17 billion in the last fiscal year, which included Rs 148.23 billion in income tax, Rs 61.12 billion in value added tax and Rs 47.21 billion in excise. According to IRD, the total tax collection from the inland revenue collection points increased by 47.16 per cent in the last fiscal against fiscal 2015-16. As per IRD, a total of 1.62 million people are in the tax net.

A version of this article appears in print on September 08, 2017 of The Himalayan Times.

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