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Multiple VAT buckaroo ‘a no go joe’
KATHMANDU, JUN 07 -
The possibility of the government introducing a multiple value added tax (VAT) system in the upcoming budget is slim as no preparation is being done to implement it at the government level.
A taskforce formed by the government under the coordination of former financial comptroller general Abanindra Kumar Shrestha to study the possibility of multiple VAT is yet to submit its report although the deadline of mid-April has already passed.
"We are yet to decide whether we will be going for multiple VAT or not," said Shanta Raj Subedi, joint secretary at the Finance Ministry. Moreover, there has been no preparation on the technical aspects such as enhancing capacity of the Inland Revenue Department, introducing new software and providing training to IRD staff, he added.
Although the business community has been demanding multiple VAT, they are not as vocal as they were last year.
The government has not been able to take any decision as the study committee represented even by the private sector has not submitted its report on time.
A member of the committee Pradeep Man Vaidya said that they had completed 90 percent
of the work and they require an additional month to complete
the report. "We will submit the report before the budget announcement," he added.
Vaidya, who represents the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) in the committee, said that the work of the committee had been delayed as both government officials of the committee were transferred from one office to another. The task force coordinator has been transferred to Public Procurement Monitoring Office and another taskforce member Nawaraj Bhandari has been shifted to the Department of Customs from IRD.
Earlier, a study committee headed by economist Madan Kumar Dahal had suggested going for multiple VAT. The business community is of the view that a multiple VAT system would help them to adjust their prices with India enabling them to be competitive. India has also adopted a multiple VAT system.
However, the business community didn't raise the issue of taxes during the interaction organised by the Revenue Advisory Committee under the Finance Ministry, said ministry officials.
Shanta Bahadur Shrestha, joint secretary at the ministry who oversees the Revenue Advisory Committee, said that the business community raised the issue of infrastructure development instead of taxes during the five interactions with entrepreneurs held in Biratnagar, Birgunj, Janakpur, Pokhara and Dhangadhi.
Posted on: 2010-06-08 07:58
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