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   Kathmandu,Saturday January 22, 2000  Magh 08th, 2056.


KTPSC makes modest progress

-By Dinesh Wagle

KATHMANDU, Jan 21- Kathmandu Tax Payers Service Centre (KTPSC), established about two months back with an aim to integrate tax related information and to provide counseling to the tax payers, has made modest achievements so far.

When KTPSC came into effect from November 17, 1999 it was planned to connect the KTPSC with all customs and revenue offices in the Kathmandu valley. After two months of the establishment of KTPSC, the computer networking plan has not come into effect.

The computer networking plan intends to connect the centre with all 9 tax offices, 3 Value Added Tax (VAT) offices, a custom office at the Tribhuvan International Airport (TIA) and 3 departments of VAT, Income Tax and Custom, all in the Kathmandu valley.

“Computer networking should be made as soon as possible,” says Professor Chandra Mani Adhikari, a Tax Officer at KTPSC. The establishment of the KTPSC will be futile if the networking is not made, he says. It is expected that the network would be set up by the end of this current fiscal year. After connecting the valley with network, it has planned to expand the network throughout the country.

The main objective of the centre is to collect information about the situation of tax in the country. It had aimed at providing tax-related information not only to all tax offices in Kathmandu Valley but also to the taxpayers. Due to delay in the establishment of the computer network, the objective is not being realised.

The centre has provided the Permanent Account Number (PAN) card to 1,600 taxpayers up to now. Other 200 are in the waiting list. Majority of the taxpayers receiving PAN are from Pashmina business. “This shows that Pashmina industries are increasing”, says Adhikari. Pashmina is one of the exportable items on the rise.

The centre had planned to provide PAN to three categories of  taxpayers : sole proprietors, tax withholding agents, private limited   companies and government offices. None of the government enterprises  except for Nepal Telecommunications Corporation (NTC) has received PAN.                                               

It is learned that they haven’t applied for PAN.  The distribution of PAN will be expanded in the sector of house rent, salary etc. by the next year. The card serves to the taxpayers as the single registration for all types of tax assessment and will remain with the taxpayers for lifetime. The centre has not made compulsory to receive PAN for them who  already have Income Tax Registration (ITR) card. “We are trying to make PAN compulsory for all. Before this, we have to make the centre  more efficient than it is now.” says Vidayadhar Mallik, Director General  at the Income Tax Department (ITD).

The ITD is launching a publicity campaign about PAN very soon. “The staff quota at the centre is insufficient”, Mallik says. The department is providing training to 26 staff of other tax office for the purpose of the centre, he says.

The centre is facing problems with those holding Income Tax  Registration Certificate (ITRC). Providing PAN card replacing the old   ITRC makes the process quite lengthy, he says.

There are about 50,000  ITRC holders in the valley. It is said that many of the companies are not interested in receiving PAN for the sake of paying tax to the government. “They are obtaining this just because if they wanted to start a business or some contracts. PAN is compulsory to have PAN for doing a business”, says an official at the centre.

Some foreign companies from Malaysia and India have also received PAN card from the Centre.   


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