Probe rights violations

Within three month of its formation, the National Human Rights Commission (NHRC) has registered more than 300 cases of rights violation. This definitely strengthens the "general perception" that the government has been violating fundamental human rights of citizens or has done nothing about such cases. This must be taken seriously if the government as well as human rights groups intend to improve the situation. It is not that human rights organizations are unaware of this fact. In fact these groups have been consistently raising issues relating to cases of arbitrary detention and disappearance of detained civilians which have increased in recent months. However, the government has not done anything to probe into these cases. This only shows how serious the government is about improving the human rights situation in the country.

The government passed the human rights bill in 1996 but formed a proper constitutional body only four years after the enactment of law. Had the then government not taken so long to form NHRC, the instances of rights violation would no doubt have been much less than it is today. Unfortunately, the then government refused to recognise the vital role such a constitutionally empowered body as the NHRC could play. Successive governments took one year to summit the report and three years to form NHRC. During this period, the government did not even bother to look into alleged incidents of human rights violation. Instead, the government went on arresting innocent people and torturing local residents in Maoist affected districts. Naturally, the situation deteriorated from bad to worse.

The very fact that so many cases of rights violation have been registered within only three month is a pointer of how bad the situation is in the country. The NHRC itself was formed only after rights groups protested. The government had to apparently be goaded by not only rights groups but also foreign countries-most of whom are donors-into forming the Commission.

Since 1996, the government has harassed civilians, tortured the innocent and arrested a number of people without any reason. Many of the arrested people have disappeared from police custody. These incidents were expected to come down after the formation of NHRC, but exactly the opposite is happening now. NHRC must therefore look into cases of arbitrary detention, rearrest of acquitted persons and arrests without warrant. Also important are cases of custodial death and disappearance. The perpetrators must be booked. If NHRC can see to it that the guilty are punished and made to pay compensation to the victims, it will go a long way in restoring faith in democracy and rule of law among the people.

Moment of decision

By Nagendra Chhetri

Nepal is at a crucial crossroads because provenly the best political system of governance could not so far win the hearts and minds of the Nepalese people. The trust and confidence placed on the present political system is fast wearing out to the extent that need to look for an alternative is being felt. But what are the suitable alternatives? First, it is not the political system that bears the burden of blame. It is the way it is implemented. People are hardly interested whether we have multiparty democracy, two party democracy or guided and controlled democracy as long as the nation is secure, goods are delivered, law and order is maintained and fundamental rights are enjoyed by citizens. Unfortunately, just the opposite is happening here. In spite of people's profound desire and high expectation, they have so far received and experienced nothing else except empty dreams, false promises and utter insecurity in their everyday lives. This very unusual situation in the whole of the country has forced the people to look for alternate system, which could give a breathing space to them.

The alternatives people are talking about across the nation today are four. One is a strong active monarchy in parliament where the people directly choose the executive head for a full five year term and remains in office for the full term. He is also responsible to the head of the state. National interests/agendas are identified and defined, and once finalized, are strictly adhered to where the head of the state has the final say. Within this framework, domestic, foreign, defence and development policies are decided and followed whoever comes to power after five years. Election is conducted under a neutral government appointed by the King from a non-political base. Strong monarchy here means residual power vested in the monarchy, which can be exercised only during times of national crisis. It also has a reduced strength of both the houses say 140-150 elected on proportional basis. Within this general framework should be activated the national Security Council to provide continuity in the major national policy to the government. This framework, in the case of Nepal, could be functional and practical till a certain level of education, development and economic infrastructure is obtained and parliamentary culture is developed step by step.

In this set up, the rights, responsibilities, accountability, privileges, limitations, duties, terms and conditions and functions of all institutions must be thoroughly identified and defined. The duties, rights, responsibilities and privileges of monarchy must also be defined and also the extent to which arbitrary role could be played by the monarchy. Even the number of political parties could be limited to three and no party which comes to power should have the authority to alter the national agenda. Constitution could be amended and national agendas changed only when there is all party consensus and the King gives his consent. In a resource constrained, backward and geographically handicapped country, the meagre resources available for development must be utilized in such a manner that it results in a balanced system of production and distribution. The need of such a national framework is dictated by the overall situation and location of this country. The aim is to slowly narrow the gap between the haves and have-nots, raise the general living standard of the country. This could largely restrict the political bargaining amongst parties and squabbling in the party on national issues.

The second alternative that people, including politicians talk about on individual basis, is a national government, again with a stronger monarchy. This would mean a coalition of all political parties may be on proportional basis also including neutral figures who are nominated. With our present condition of no-consensus on national issues, either on domestic or foreign policies, it is quite unlikely that this coalition will work out. Moreover, we have experiences of couple of coalition governments earlier in this country. The country needs a political father-figure for the coalition to function, a figure who can lead towards a set objective, sacrifice for a national cause, set physical as well as moral examples, inspire and motivate the whole nation and demonstrate outstanding accountability for everybody to come to the national mainstream. So far, there is none in the Nepalese political horizon who can occupy this exalted and ideal position.

The third alternative could be the proletariat dictatorship that is being canvassed, spread and forced presently by the so-called Maoist ideology. This is a one party state dictatorship without human rights, fundamental freedom and related individual rights. One has state duties but possesses nothing. One has to live in a rigid and regimented social and political set up. One thinks what he is told to think and eats what he is told to eat. From day one, one lives in a cage. This is a system which cannot be sustained and compete. So it has been largely rejected. This system has now given way to loosely centralized political control and flexible and decentralized economic system. This internal imposition of extremist ideology can not be acceptable, internally because the people have tasted the flavour and freedom of liberal social order and competitive, flexible political system and externally it has been rejected by the international community. Should this coercive system be forced on to people nothing could be more painful and excruciating.

The fourth alternative could be a puppet government controlled by external forces from foreign capitals. This is possible if responsible people cross national ethic, personal moral limits and present themselves as items for sale in a grocery, qualities and values are determined by the amount offered or coerced to offer.

Nepalese domestic and economic conditions do not allow massive amount in a short series demanded or required. The only alternative is external forces which can offer huge amounts and influence and dominate. Despite all wealth of experiences, qualities and perfection in a liberal democracy, it has just became a vehicle for buying and selling votes in Nepal and dragged this country to ruin. The shock absorbing capacity as well as the purchasing capacity of Nepal is low, negligible whereas other countries in the region do not suffer from such constraints. The imposition of external will by means even other than orthodox war would be much more severe and painful than the internal extremist imposition, particularly on a nation which takes pride in being the only independent country in the region throughout its history. Will not Nepalese want to remain free citizens of a free country? It is a moment for decision and choosing.

The burning question for Nepalese right now is not whether the recently restored multiparty democratic political system works or not, it is whether the Nepalese national integrity, its sovereignty and security is maintained and consolidated. Today, much is irregular, irresponsible and mismanaged, but the blame straightaway goes to the monarchy. Monarchy has to take the burden of all blames and responsibility without any constitutional right for all the wrongdoings here. Why monarchy is made a prime target and dragged into unproductive political controversy? Who is this invisible force behind the curtain pulling this satanic string, creating an unscrupulous gap between the people and the monarchy? RJ-100 becomes controversial, monarchy is dragged; appointment of HRC chairman published, monarchy is dragged; Mohan Niraula makes a speech, monarchy is dragged; Prabin Gurung dies in an accident, again the monarchy is dragged. What is the motive behind all this? Is monarchy the last obstacle to be bashed, blasted and broken to achieve the final goal in order to break the Nepalese backbone? Just imagine this country without monarchy.

The only assimilative strength of Nepalese nationalism lies in the blending character of monarchy here. To maintain, strengthen and enhance national integrity and consolidate national independence, Nepalese need to unite and act now. To remain prepared either for low/high intensity conflict or to combat external domination, Nepalese need to join hands and present a united front. A suitable reform in the political system has become the demand of the day. For Nepalese it is time to take a crucial and far reaching decision. Nepalese from all sectors, communities, races, religions, regions and ideologies including Maoists, should stand on one platform and decide what is right because you are all Nepalese first before anything else.

Belly sensitivity

By Subas Risal

Bhoondi, (the belly) isn't it an interesting topic to deal with. Young ones to senile men are fighting to get rid of the pot-shaped bellies they have. Some succeed in trimming but unfortunately for some, the outcome is rather embarrassing despite their relentless effort. What is more embarrassing than when someone well acquainted with you says "you have augmented your bhoondi " This is the last thing someone wants to hear after their unrelenting effort to get rid of that troublesome part of the body.

This reminds me of an incident. It all happened a week ago. A free health camp was organized by an organization in which I was involved. I had to wake up early in the morning. Waking up early in the morning is an arduous task for a guy like me who normally gets up around 8 AM. But anyway, it would mean great morning walk for me, if I walked from Kopundole to Putalisadak. So I started walking slowly because I'm not a nimble footed guy. As I was walking, suddenly some one bellowed out my name. It was a perfect example of what we call a deafening sound. It was no other than loquacious Mr G with his brand new splendor. He showed his generosity by inviting me to occupy the pillion. Mr G is politically attached to a student wing of a national party. So as anticipated, he started blabbing about the latest political happenings. I joined the party too by chatting about all the latest political nonsense. With obvious excitement, he desperately wanted to lengthen the discussion, after all he was politically connected. He wanted to have coffee at the bakery nearby. As we entered the bakery, I jokingly said, "your bhoondi has augmented since the last time I saw you. Unexpectedly, He was so furious about my comment that he went dumbstruck for a moment. A few minutes of eerie silence and he started spewing out the angry words at me. It was like a lull before the storm before the hornets were out. I was very inquisitive to find out what was it that I had said that had enraged him. The reason behind his anger was he was visiting the gym club for a month to trim his belly. His girlfriend was also constantly badgering him to trim his belly. His implacable anger was manifested by the way he talked to me. I tried to appease him but in vain.

He then flounced out of the bakery and vented his anger on the bike by furiously kick starting and whizzing off at breakneck speed. I was then left alone to ponder over the combination of politics and bhoondi. When a politician is in power, he seems to put on weight and when out of power he begins to lose weight. "What's it got that we ain't got" lament people from other professions.

Salient features of the Draft Income Tax Act 2000

By Rup Khadka

The Nepalese income tax system is in the process of dramatic change. The draft income tax act 2000 (the draft act) has been prepared. It gives new dimension to various aspects of income tax and introduces several new provisions that are expected to meet the need of the present day modern economy.

The draft act is self-contained. All provisions relating to income tax have been gathered from numerous acts in a single income tax act. After the implementation of this act, income tax will not be affected by any other act. It is assumed that the Annual Finance Act will amend the income tax act automatically.

The draft act is well structured. It follows logical sequence. All related provision such as timing and valuation rules, penal provision etc. are put together. It will make the life of both income taxpayers and its collectors much easier than under the existing law.

The draft act adopts modern concepts in various spheres of income tax. It is based on the principle of self-assessment and adopts the current year basis and pooled depreciation system. All business related expenses are deductible.

The draft act is precise and presents various provisions explicitly. Attempts have been made to express various provisions explicitly and to define them wherever needed. This is intended to make the law easy to understand and to avoid the scope for different interpretation. This will help taxpayers to comply with the tax and tax collectors to implement income tax system properly.

The draft act is comprehensive. It introduces several new concepts including transfer pricing, thin capitalization, and merger that are expected to handle the situation that is likely to emerge in the near future due to the establishment of joint ventures and multinational companies in Nepal

The draft act attempts to bring all sources of income into the tax net. It divides sources of income into three categories viz., business, investment and employment. Investment is defined broadly, so are interest and dividends. The draft act tries to tax similar economic activity in a similar way.

The draft act has not only broadened the tax base but also has adopted some measures to protect the tax base. To this end, it has made provision to levy tax on worldwide income, including capital gains. However, since receipts from gift, lottery or gambling are transfer of wealth rather than creation of wealth, they are kept outside the tax net. They could be subject to a separate tax.

The draft act clearly specifies the role of tax administration in administrating tax. It distinguishes between the criminal and civil role and makes tax administration responsible for the latter.

The size of the draft act is more than double the size of the existing act. The draft act contains 140 sections and two schedules against 66 sections under the existing act.

Policy decisions under the draft act are relatively simple. Small taxpayers will be subject to the presumptive tax. They will not have to be bothered with many provisions made under the draft act. Similarly, medium sized taxpayers also will not have to deal with several sections of the draft act. It will not be difficult for the big taxpayers to follow the draft act. It is self-contained and transparent.

The formulation of the draft act is not an end. It should be followed by several other activities. First of all, it is necessary to prepare an explanatory note explaining the need to introduce a new income tax act and the rationale and working of each provision introduced through this act.

The British government produced general explanation entitled "A plain, short and easy description of the different clauses of the income tax, so as to render it familiar to the meanest capacity" when it introduced the first modern income tax act in 1799. This is also the practice in many other countries.

The next step should be the formulation of income tax regulations covering all procedural matters and forms. Income tax procedures should be made simple, clear and self-explanatory.

Since the draft act will be a big departure from the existing one, it is most necessary to train tax officials on various aspects of the new law. Tax officials are required to be familiar with the new law thoroughly in order to avoid implementation problems. For this, it is necessary to organize a series of general as well as specific training programs on the draft act. Training materials must be developed in order to standardize courses to be organized various times in different places.

It is also necessary to develop operating manuals to simplify day to day work of the tax administration and to avoid different interpretation of the law by different officials.

The coverage of income tax is very large in terms of the number of taxpayers. It covers various groups of society. It is necessary to launch a comprehensive tax education campaign targeting potential taxpayers and others. In this context, it is necessary to publish articles on various aspects of the draft income tax law in the widely circulated newspapers and magazines. Similarly, income tax message also could be sent out through brochures, pamphlets, and leaflets. There is also need to organize interaction programmes on income tax throughout the country. Income tax message also could be disseminated through television and radio programmes, newspaper advertisement and income tax videos.

Such a tax education program would create a public opinion in favour of the draft act, minimize resistance, reduce the scope of harassment, raise the level of tax compliance and facilitate proper implementation of the income tax.