KATHMANDU, OCT 19 - Experts today stressed on the need to expand tax-net on several virgin areas in order to collect more revenue.
Speakers at an interaction programme organised by Nepal Law Society (NLS)underlined the need to simplify the complicated format of the present income tax Act 2001.
"It is pity that the system is facing problem to address the real issues even after the incorporation of Income Tax Act 2001 with progressive steps,," said Anup Raj Sharma, chairman of the NLS.
"And without simplifying its structure, it cannot justify its own objective in most of the cases," he said.
Echoing Sharma’s logic, other legal experts, however, admired the current Act as a step forward towards progressive society. "Despite some practical problems, we must accept that this Act is directed towards better system," they added.
"And if the language structure of the Act is not improved or not simplified, it would be very difficult for the courts to provide justice," they added.
Bhanu Prasad Acharya, secretary at the Ministry of Finance conceded that the area of tax-net needs to be improved. "Revenue’s contribution to the nation’s GDP is as low as 12 per cent. Hence, expansion of taxable area should considered seriously," added he.
Explaining the widening gap between expectation and achievement in taxation, Acharya advocated the empowerment of the implementation mechanism to get maximum yield from the present Act.
Speaking on the occasion, Lene Bendix, Chief Technical Advisor, DANIDA RAS Project said that the objective of the Act would only be achieved stakeholders, participants and the government agencies handle it positively..
She further said that the present Income Tax Act was a step forward towards reforming the overall nation’s system.
Expressing pleasure over the result of the recent survey, she said both tax-payers and tax-officials have accepted tax as a positive step forward to carry out the developmental works of the country.Posted on: 2003-10-18 11:10

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