Mining of sand, boulders likely to be affected

Kathmandu, June 14

Mining of sand and boulders could be affected as there is confusion in fixing the tax rates of the construction materials because the Financial Bill of next fiscal has downsized the authority of provincial governments to fix the tax rate of sand and aggregates.

Earlier, the guidelines developed by the Ministry of Federal Affairs and General Administration (MoFAGA) had extended the authority to award the contract of mining sand, boulders and setting up crusher industry to the local governments. However, the provincial governments were authorised to fix the tax rate of the aforementioned construction materials.

Now there is confusion among the sub-national governments in fixing the tax rates of these construction materials, as the Financial Bill 2018-19 no longer provides the authority to the provincial governments to fix tax rates.

Due to this confusion, mining of sand and boulders could be stopped any time, as the local governments have reportedly demanded the Ministry of Federal Affairs and General Administration to issue the new guideline as early as possible, according to Suresh Adhikari, spokesperson for the MoFAGA.

“In our correspondence with Ministry of Finance (MoF), they have assured us to bring the guidelines to fix the tax rates and the responsible body for tax collection soon.”

It is reported that the local bodies that are providing the authority of mining and setting up crusher industry could stop these activities as they are unaware about the revenue they could generate from this after the MoF took over the authority of provincial governments.

Authorities of the MoF have said that the ministry is developing guidelines for a reasonable and transparent taxation system for essential construction materials and will submit it to the Cabinet for approval as soon as it has been drafted.

The government so far has banned the export of sand, aggregates and boulders. However, there has been no control in supply of these construction materials for local use.

Adhikari said that the local bodies themselves are responsible to execute the standards and guidelines for the mining of sand and boulders and operation of crusher industry.