First Business News Portal in English from Nepal
KATHMANDU: Nepal Chamber of Commerce (NCC) and Federation of Nepalese Chambers of Commerce and Industry (FNCCI) have asked to the government to extend the time for tax payment after the prohibitory order is lifted. Stating that it is not feasible to pay taxes as soon as the prohibitory order is lifted, they have sought additional time for tax payment.
According to the Inland Revenue Department (IRD), the prohibitory order will expire at midnight of September 9 and all due excise duty, income tax and value added tax (VAT) will have to be paid to the government by September 10.
NCC submitted a letter to the IRD requesting for an additional time of two months from September 9 to clear the taxes stating that the industrialists are not in a situation to pay the taxes within the time limit mentioned by the government. NCC President Rajesh Kazi Shrestha said that it will take time to prepare all the tax related documents for the industries, as there is a strict ban on mobility during the lockdown.
Likewise, FNCCI is also submitting a letter today to the department requesting for at least 15 more days from the current deadline. “People are dying, everything is chaotic and businesses and trade have been severely affected by the pandemic since six months, but the government seems concerned only about collecting taxes,” lamented Kishore Kumar Pradhan, vice president of FNCCI.
Pradhan said that no one can pay taxes within the stipulated time in this situation. “How can we pay taxes in just one day after the end of the ban? At least the government should provide a time of 10-15 days to arrange everything for the tax payment.”
The department has stated that taxpayers who do not pay due taxes by September 10 will be fined as per the law. NCC said that the private sector is always ready to pay revenue to the government but the time should be extended due to the difficulties being faced during the pandemic. Pradhan also said that putting pressure for tax payment just after the ban by the government is lifted seems like it is looking for a fight with the private sector.
Director General of IRD, Binod Kunwar, said that taxpayers have to pay taxes as there is no lockdown at present and they can submit their income details online.
Pradhan said that it is impossible to submit all details through the online platform of all the business transaction as offices are closed and it is not easy to raise the money though the businessmen have paid the VAT bill. He said the private sector can pay taxes only if the time is extended.
According to IRD, the monthly tax of companies must be paid as per the Value Added Tax Act 2052, while the excise duty must be paid as per Excise Duty Act 2058.
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