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51,000 registered firms have not paid a single penny in VAT

Kathmandu, August 2

Around 51,000 business firms registered with the government as value-added tax payers have not deposited a single penny as VAT yet, says the Inland Revenue Department.

According to the IDR data, around 30 per cent of total VAT-registered business firms till mid-June have not deposited VAT.

Around 170,000 firms have registered themselves with the government as VAT payers under the VAT Act, 1995.

The non-paying firms are in a big number as many of the firms closed business without informing, the IRD says.

“There are some firms which have been registered, but not launched any business. Some have already been closed,” IRD spokesperson Dhaniram Sharma says.

“The number appears big as we have not been able to make them exit the list,” Sharma says, “We need to scrap the registration of non-functioning companies and make others pay VAT regularly.”

 

However, there are some legal hurdles in introducing the exit system, Sharma informs, adding the IRD is also incapable of regularly collecting VAT from registered firms.

Meanwhile, the Office of Auditor General has pointed out that VAT collection has not been effective and directed concerned authorities to make immediate improvements.

It has also suggested that government review criteria and procedures of VAT rebate.

The government had collected Rs 161 billion as VAT in the last fiscal year 2016/17, which is 31.63 per cent more than the collection of previous year.

 


Published on August 2nd, Wednesday, 2017 11:45 AM


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