Nepal | September 27, 2020

Tax authorities press businesses to clear dues

Government under pressure to meet even recurrent expenditure

HIMALAYAN NEWS SERVICE
Share Now:

KATHMANDU, JUNE 18

As the government is reeling under immense pressure to meet financial liabilities, including recurrent expenditure amid low revenue collection, the Ministry of Finance has started pressuring industrialists and businessmen to clear tax dues.

Taxpayers are reluctant to pay tax dues following a recent order from the Supreme Court which allowed taxpayers to clear tax dues within a month after the lockdown is completely lifted.

The apex court verdict has hit the government’s financial position, which was already poor due to low revenue collection after business activities were halted for almost three months amid the nationwide lockdown imposed by the government to prevent the spread of the coronavirus pandemic.

As a result, the MoF has started contacting industrialists to pay taxes stating that the government is under pressure to meet even recurrent expenditure.

An industrialist seeking anonymity said MoF and different tax authorities had been asking them to deposit tax dues stating that the government was under pressure to manage financial liabilities.

However, the industrialist said the government was only concerned about its problem and had been overlooking problems of businesses and their financial liabilities.

Meanwhile, officials at the finance ministry said businesses should support the government as tax collection was the only source for running the state administration.

“Though market activities have resumed and the lockdown has eased, tax collection has been halted completely after the recent verdict of the apex court. Though we cannot force business community to clear tax dues, those who are in a position to clear their taxes should clear them. It is their responsibility to do so,” said a source at the MoF, who did not want to be named.

The government had asked businesses to clear tax dues by June 21, but businesses do not have to comply with that following the verdict of the Supreme Court.

Meanwhile, Shekhar Golchha, senior vice-president of the Federation of Nepalese Chambers of Commerce and Industry, said both the government and private sector should support each other during hard times.

“Both the government and business community are facing difficult times in their own ways. While those businesses and industrialists who are in a position to clear taxes should clear them and help the government, the government should not force any person or business to deposit tax dues at this critical juncture,” he said.

A version of this article appears in e-paper on June 19, 2020, of The Himalayan Times.

Follow The Himalayan Times on Twitter and Facebook

Recommended Stories:

More from The Himalayan Times:

Dhangadhi Sub-metropolis continues providing free food to returnees from India

DHANGADHI: Dhangadhi Sub-metropolitan City has been providing food and hygiene kits free of cost to Nepalis returning home from India via Trinagar border checkpoint since March. The Sub-metropolis has been providing food for Nepalis who are tired after a long journey from India since the time Read More...

Students demand justice for Bajhang rape victim in Kathmandu

KATHMANDU, SEPTEMBER 26 Students take to the streets on Saturday demanding justice for a 12-year-old girl whose dead body was found in a temple in Bajhang district on Thursday night. The minor was raped before being killed by the culprit/s. As per local police, investigation into the case in unde Read More...

Passengers adopt 'new normal' at Kathmandu airport amid coronavirus scare

KATHMANDU, SEPTEMBER 26 Passengers traveling to and from the capital are seen with personal protective gears at the domestic terminal of the Tribhuvan International Airport in Kathmandu. Photos by Skanda Gautam for The Himalayan Times. Read More...

United earn dramatic win at Brighton with late Fernandes penalty

BRIGHTON: Manchester United beat Brighton & Hove Albion 3-2 away in the Premier League on Saturday after an incredible finale in which Bruno Fernandes struck the winning goal from the penalty spot in the 100th minute of the game. Fernandes's winner, which came after referee Chris Ka Read More...

Chelsea recover from three goals down to draw at West Brom

Chelsea striker Tammy Abraham struck a 93rd-minute equaliser as they battled back from three goals down to draw 3-3 at West Bromwich Albion in their Premier League clash on Saturday. An error by Marcos Alonso led to Callum Robinson opening the scoring for West Brom in the fourth minute and t Read More...

A team of women of Police march past in a programme organised to mark the Constitution day at Nepal Army pavilion in Tundikhel, Kathmandu, on Wednesday, September 19, 2018. Photo: Skanda Gautam/THT

Province 2 threatens to knock Supreme Court door

KATHMANDU, SEPTEMBER 26 Months after the two bills related to adjustment of Nepal Police and Provincial Police were authenticated, provincial governments have not been able to take control of police. As a result, Province 2 government has sent an angry letter to the federal home ministry asking i Read More...

Local levels to resume schools from today in Siraha district

SIRAHA, SEPTEMBER 26 Community schools in Laxmipur Patari Rural Municipality and Mirchaiya Municipality of Siraha, that have remained closed for the past six months are likely to open from tomorrow. Education sections of both the local bodies, by issuing separate notices, decided to open s Read More...

Three persons including campus chief absconding

DHULIKHEL, SEPTEMBER 26 Three persons, including campus chief, have been absconding ever since police issued an arrest warrant against them in Kavre’s Banepa. A fraud charge was filed against three people including Kavre Multiple Campus Chief KJ Baidar in Kavre’s Banepa Municipality, with Read More...