KATHMANDU, Aug 17, 2012
The number of large taxpayers has increased by a whopping 40 percent over the last one year despite slowing economic activities in the country as the government stepped up revenue investigations discouraging manipulation of transactions by business firms through fake VAT billing.
During the fiscal year 2011/12, the government stepped up investigations into fake VAT billing rackets including 518 business organizations that were found to have evaded more than four billion rupees.
Large Tax Payers´ Office (LTO) stated that the number of large taxpayers increased to 722 by the end of the fiscal year 2011/12, up from 522 a year earlier. Of the total large taxpayers, 94 are from banking, 124 from non-agriculture, 29 from multinational companies, 106 from Public Enterprises (PEs), 262 from trading and 107 from agriculture sectors.
A senior office bearer of the Federation of Nepalese Chambers of Commerce and Industry said the number of large taxpayers has shot up significantly, especially those from trading business firms, as the government stepped up investigations on tax evasion following the revelation of 518 cases of fake VAT last year.
According to Madhu Kumar Marasini, deputy director general of Inland Revenue Department (IRD), 495 new cases of revenue evasion through fake VAT billing are under investigation besides 518 old cases.
“More and more firms are showing genuine VAT bills to maintain transparency in their business. It is a positive impact of ongoing investigation into fake VAT billing practices,” he said.
He also said strengthening US dollar vis-à-vis Nepali rupees as well as increasing volume of imports also pushed up the turnover of business firms over the period.
“The number of large taxpayers has shot up significantly along with their increasing contribution to total tax revenue,” said Ananda Dhakal, chief of LTO, at an interaction with large taxpayers on Thursday.
Out of the total tax revenue, contribution of large taxpayers increased to 52 percent during the fiscal year 2011/12 compared to 49 percent recorded the previous year. The government collected Rs 49.40 billion from large taxpayers during the year, up by 23 percent recorded earlier year.
Out of the total revenue collected from large taxpayers, 5 percent was contributed by agro-based, 47 percent by multinationals, 28.8 percent by banks and financial institutions, 4.1 percent by non-agriculture sector, 6.7 percent by trading and 7.2 percent by PEs.
Dhakal said a total Rs 19.61 billion was collected from the top ten tax payers, Rs 61.84 billion from top hundred taxpayers during the fiscal year 2011/12.
Business enterprises having an annual turnover of over Rs 250 million are designated as large tax payers.
Tax officials said business firms involved in the trading of basic essential commodities such as foods, clothing, petroleum products as well as dealers of construction materials, electronic goods are emerging as large taxpayers.
Source: Republica
The number of large taxpayers has increased by a whopping 40 percent over the last one year despite slowing economic activities in the country as the government stepped up revenue investigations discouraging manipulation of transactions by business firms through fake VAT billing.
During the fiscal year 2011/12, the government stepped up investigations into fake VAT billing rackets including 518 business organizations that were found to have evaded more than four billion rupees.
Large Tax Payers´ Office (LTO) stated that the number of large taxpayers increased to 722 by the end of the fiscal year 2011/12, up from 522 a year earlier. Of the total large taxpayers, 94 are from banking, 124 from non-agriculture, 29 from multinational companies, 106 from Public Enterprises (PEs), 262 from trading and 107 from agriculture sectors.
A senior office bearer of the Federation of Nepalese Chambers of Commerce and Industry said the number of large taxpayers has shot up significantly, especially those from trading business firms, as the government stepped up investigations on tax evasion following the revelation of 518 cases of fake VAT last year.
According to Madhu Kumar Marasini, deputy director general of Inland Revenue Department (IRD), 495 new cases of revenue evasion through fake VAT billing are under investigation besides 518 old cases.
“More and more firms are showing genuine VAT bills to maintain transparency in their business. It is a positive impact of ongoing investigation into fake VAT billing practices,” he said.
He also said strengthening US dollar vis-à-vis Nepali rupees as well as increasing volume of imports also pushed up the turnover of business firms over the period.
“The number of large taxpayers has shot up significantly along with their increasing contribution to total tax revenue,” said Ananda Dhakal, chief of LTO, at an interaction with large taxpayers on Thursday.
Out of the total tax revenue, contribution of large taxpayers increased to 52 percent during the fiscal year 2011/12 compared to 49 percent recorded the previous year. The government collected Rs 49.40 billion from large taxpayers during the year, up by 23 percent recorded earlier year.
Out of the total revenue collected from large taxpayers, 5 percent was contributed by agro-based, 47 percent by multinationals, 28.8 percent by banks and financial institutions, 4.1 percent by non-agriculture sector, 6.7 percent by trading and 7.2 percent by PEs.
Dhakal said a total Rs 19.61 billion was collected from the top ten tax payers, Rs 61.84 billion from top hundred taxpayers during the fiscal year 2011/12.
Business enterprises having an annual turnover of over Rs 250 million are designated as large tax payers.
Tax officials said business firms involved in the trading of basic essential commodities such as foods, clothing, petroleum products as well as dealers of construction materials, electronic goods are emerging as large taxpayers.
Source: Republica
No comments:
Post a Comment