Kathmandu, Bhadra 09 - Almost 3,000 businesses in Chitwan have availed of tax relief through the "Economic Act 2083" to clear pending tax dues at a lesser cost. The Inland Revenue Office announced so far, 2,906 companies have gained from the one-time tax settlement scheme in Chitwan. It enables the eligible taxpayers to settle some of the unpaid tax obligations through payment of only 1 percent of the unpaid tax, value-added tax (VAT) or excise duty.
The facility provides for remuneration of the accumulated interest, penalties, late fees and other additional charges on eligible outstanding liabilities. The tax relief provision was introduced to support companies which could not regularize their tax status due to past tax dues, non-filing issues or penalties that had accrued over time. Eligible businesses might be able to pay 1 percent of the unpaid principal tax amount to settle its debts. They can in turn get a deferral of any applicable interest, fines and late-payment penalties. The scheme applies especially to companies that have:
- Failed to submit income tax returns
- Not filed VAT returns for previous periods
- Operated without obtaining a PAN registration
- Obtained a PAN but never started business operations
- Failed to renew excise duty licences
- Been involved in pending tax disputes and want to withdraw their cases
The Inland Revenue Office says that businesses with unresolved tax cases can also withdraw their disputes and pay the applicable amount under the relief provision, according to the Inland Revenue Office.
The tax settlement facility not only enabled the businesses to move to the path of compliance; it has also contributed to the revenue collection by the government. The report says, Chitwan has seen a rise in revenue of about Rs 280 million in the first month of this fiscal year compared to the same period of last year. Chitwan has a sizeable and diversified tax base. The district now has over 74,000 taxpayers with income taxes, including the following:
- More than 11,000 VAT-registered taxpayers.
- Nearly 5,000 businesses registered under excise duty
Many firms were making excellent progress on compliance issues and were able to do this under the one-off scheme, as evidenced by the large number of companies participating. The Inland Revenue Office has appealed to eligible people in Chitwan to avail the facility before it is shut down. The program is designed as a limited, one-time opportunity rather than a permanent tax waiver scheme.
Companies with pending tax liabilities should check their tax records, ensure that they understand the amount outstanding and contact the appropriate Inland Revenue Office to establish if they qualify. The facility becomes a realistic solution for many firms to get back on track with the tax laws without paying the late fees, interest, and penalties for years of non-compliance.
The Economic Act 2083 tax relief provision has helped 2,906 companies in Chitwan to settle their pending tax liabilities by paying only 1 percent of outstanding tax, VAT and excise tax for the companies. Interest and penalties will be exempted and the scheme offers an excellent compliance opportunity to businesses across Nepal who meet the eligibility criteria.
Source: Ratopati
