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Payments to PM Relief Fund ruled ineligible for taxpayer incentive gift

Kathmandu, September 16

The Inland Revenue Department has run into a technical snag after someone who donated to the Prime Minister’s Disaster Relief Fund won the department’s “taxpayer incentive gift” draw.

Under the procedure the department has set for the programme, only those who purchased goods or services and obtained a bill are eligible to take part. However, a person who contributed Rs 1,000 to the Prime Minister’s Disaster Relief Fund, set up after the September flooding, was among the one lakh winners selected through the lottery.

According to department director Keshav Raghubanshi, since a payment to the fund isn’t a payment for goods or services purchased, it doesn’t actually qualify under the taxpayer incentive scheme. He said such fund payments shouldn’t normally have been included in the draw, calling it a technical lesson the department will now correct, and added that the department would consult the Ministry of Finance on what to do about draws that have already been held.

The government introduced the scheme at the start of the current fiscal year to encourage the practice of billing and receiving bills. Payments made directly to the government are not eligible for the incentive under the scheme’s rules.

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