Over 66 percent of taxpayers in Dhanusha district are reported not to have submitted tax details regularly. Neither have they come in contact nor have they submitted tax details, said the Inland Revenue Office, Janakpurdham.
"More than 66 percent of taxpayers in the district have not submitted tax details. We are worried about this. Efforts are underway to make them submit tax details and pay taxes regularly," said chief tax officer Kishor Bartaula.
Efforts were underway to identify and resolve problems after discussing with businesspersons and representatives of business organizations within the area of the office, he said. The revenue office is assigned to look after affairs of Sindhuli, Sarlahi and Mahottari districts.
The process to take action against these activities has moved forward, and awareness programmes launched, he said. "In the first phase, we will send SMSs asking for the submission of tax details. Thereafter in the second phase, a letter will be sent to each taxpayer. We will seek legal ways like freezing assets and the bank account of the respective person as a final option to recover revenues."
President of the Nepal Chamber of Commerce, Dhanusha Jitendra Kumar Mahaseth said many businesspersons were facing problems due to a lack of tax education.
The government should impart tax education while issuing the certificates of value added tax (VAT) and the permanent account number (PAN), he suggested. "There is a need to make taxpayers aware about the ramifications of not paying taxes timely. One cannot be exempted from tax payment," he said. Various factors like non-transaction after registering a business and quitting a business without closing it have made the matter worse, he said, stressing the need for the business organizations and the government to come together to resolve the problems.
President of the Confederation of Nepalese Industries, Dhanusha, Bijaya Sah viewed that discouragement instead of encouraging taxpayers has aggravated the problems. "There is no atmosphere conducive for taxpayers. On the other hand, they lack knowledge about what are the consequences of not paying tax in time," he said.
According to a provision, a taxpayer is bound to determine tax amounts to be paid on their own and submit the details within 25 days of the completion of the particular month. As a result of not paying taxes and submitting the details, the target revenue collection will be hit and arrears will increase, said Bartaula.
There are a total of 34,463 taxpayers in the district. Of them, 7,477 have been registered under VAT, and 1,435 under excise duty. The number of those who have been registered under individual PAN has hit 71,198.
The number of those who have not submitted tax details has shot up to 24,403 in the previous fiscal year, 2021/22 against 13,527 in the FY 2020/21, said the revenue office.
Of the business forms registered under VAT, 4,998 have yet to come in contact in the current FY, 2022/23.
As a result, dues amounting to over Rs 573 million have yet to be collected (over Rs 287 million under income tax and more than Rs 285 million under VAT), it said. Likewise, dues equivalent to the aforementioned amounts in interest, and addition and late fees have yet to be collected as well, it added.
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