IRD honours top taxpayers

Kathmandu, Nov. 23

The Inland Revenue Department (IRD) has honoured the outstanding taxpayers, who contributed to the country's revenue with high tax payment, on the occasion of National Tax Day and Tax Week.

At a programme organised to mark the conclusion of the Tax Week that is celebrated in the first week of Nepali month Mangsir (17-23 November this year), Finance Secretary Krishna Hari Pushkar and Revenue Secretary Rameshwor Dangal presented certificates to the best taxpayers.

Nepal Telecom is honoured for filing the highest income tax from the corporate sector in the last Fiscal Year 2021/22 while Vijay Kumar Shah was felicitated for being the highest personal income tax payer.

Likewise, Surya Nepal also got the opportunity to be honoured as it paid the highest total internal revenue.

Similarly, Rajesh Metal Crafts Pvt. Ltd., Shivashakti Ghee Udyog Pvt. Ltd. and OCB Foods and Feeds Pvt. are honoured as the largest taxpayers from special industry sector, export business and agriculture and livestock industries.

Chhimek Laghubitta Bittiya Sanstha Limited has been the largest taxpayer from the cooperative and microfinance sector, Nabil Bank Limited from banks and financial institutions, Nepal Reinsurance Company from the insurance sector, and Nobel Medical College and Teaching Hospital from health and education service providers.

Likewise, Manakamana Darshan Pvt. Ltd. became the largest taxpayer from tourism business, and Hansaraj Hulachand and K Pvt. Ltd. from commodity trading enterprises.

From the medium-level taxpayers, Nepal Securities Exchange Bazar Limited (now NEPSE) is honoured while Chilime Hydropower Company paid the highest tax from energy industry and IME Limited from remittance and money transfer.

Meanwhile, Gorkha Brewery Pvt. Ltd. has been honoured for filing the highest Value Added Tax (VAT) from among the taxpayers who participated in regular tax by filing the VAT statement and the corresponding tax on time for the past two years.

Speaking at the event, Finance Secretary Pushkar said that the economy is under pressure due to the failure to collect revenue as per the set target. He said that revenue collection has contracted due to lack of liquidity, contraction in demand and some policies implemented to control external sector imbalances.

Officials of the Ministry of Finance said that such contraction in revenue is the most difficult time in history.

"Although the current problems in the economy are not alarming, there is a need for some reforms in the economy. Countries like the USA and China are also facing various economic problems," said Pushkar.

He also informed that the preparations are being made to increase the scope of taxes and to work accordingly after taking suggestions from the expert team in terms of tax-rate management.

Likewise, Revenue Secretary Dangal said that in the first four months of the current year, only 72 per cent of the revenue target was met, so now the economy is in a difficult situation.  

He said that the reduction in revenue collection may affect the entire economy, including the implementation of the government's economic policy and development project.

Director General of the IRD, Ritesh Kumar Shakya, said that from the revenue outlook of the past four months, it is evident that the internal revenue is in a 'stressful' situation and the challenges will be further increased in the days to come.

Shakya informed that the IRD has emphasised on the use of technology to make tax administration more agile.

Shekhar Golchha, President of the Federation of Nepalese Chambers of Commerce and Industry, urged to create an environment where taxes are paid happily.

He complained that the private sector was repeatedly hurt by the revenue tribunal even in the cases where the IRD would have lost.

Likewise, President of Nepal Chamber of Commerce, Rajendra Malla, suggested the department to provide PAN card at the time of granting citizenship to expand the scope of tax. He emphasized on the need for policy reforms to solve the problems caused by the increase in bank interest rates in the economy.

Bishnu Agrawal, President of Confederation of Nepalese Industry, said that due to increase in interest rate and lack of liquidity, morale of the private sector has decreased and further contraction in revenue collection could be seen till January next year.

Published in The Rising Nepal daily on 24 November 2022.