Irregularities in tax collection
KATHMANDU: A corruption case was filed by Commission for Investigation of Abuse of Authority (CIAA) on July 16 against three members of the Tax Settlement Commission (TSC) formed in 2015 under Former Finance Minister Ram Sharan Mahat. TSC Chairperson Lumba Dhowj Mahat and members Chudamani Sharma and Umesh Prasad Dhakal are charged for embezzling Rs 10.02 billion each in the name of exempting taxes of 45 companies. This case has raised questions on the intent behind the formation of TSC and the parliamentary Finance Committee has already directed the government to instigate the process to annul the TSC Act 1976.
The charge sheet filed by anti-graft body has revealed irregularities in tax collection. Speaking with the THT Perspectives, Khagendra Prasad Rijal, Assistant Spokesperson for the CIAA, says, “Through our investigation we discovered that many private and public companies were exempted tax and VAT through irregular procedure by TSC. Big distillery companies such as Triveni distillery, Shree distillery, Gorkha brewery have received large sum of tax exemption. Companies like Ncell, Buddha air, Spacetime Nepal, Herbo International were also awarded higher tax exemption.”