VOLUNTARY DISCLOSURE OF INCOME SCHEME EXPIRES
Govt contemplates crackdown on defaulters

By Bhaskar Sharma

KATHMANDU, Jan 13: The government is bracing to take serious action against all tax defaulters who failed to disclose their tax returns during the Voluntary Disclosure of Income Scheme (VDIS) which expired today. Only Rs 360 million in taxes were collected during the entire scheme period, much of it in the last few days.

A high level source at the Finance Ministry told The Kathmandu Post that legal action will be taken against all tax defaulters. "The action will be initiated on the basis of a profile created by the Inland Revenue Department (IRD). Big taxpayers who have defaulted their taxes will face the heat first," said the source.

The IRD is now to launch sweeping investigations to unearth undisclosed income and property. "The government’s announcement on VDIS was an indication of its tolerance before hardening its stance to dig out hidden income and wealth. Now they (defaulters) have to face severe legal consequences," the source added.

Though the VDIS expired today, individuals and businesses in Kathmandu can still benefit from the scheme till tomorrow when the IRD office is slated to open to compensate for Sunday, a public holiday.

Finance Minister Dr Ram Sharan Mahat during his budget presentation for the current fiscal year had urged tax defaulters to voluntarily disclose their sources of income by January 13 or face in-depth investigation that may even result in the confiscation of their properties.

He had announced the revenue raising scheme promising that tax defaulters would be given amnesty and no inquiry would be made on their sources of income and property earned before mid-July 2000 if they declare their self assessed value of their property at the price of July 16, 2001.

Speaking to The Kathmandu Post today, Dr Mahat claimed that most big taxpayers have cleared their taxes. However, he asserted that legal action would be initiated against those who failed to abide by the government’s directives. "Those people who have not cleared their taxes, despite the opportunity provided to them, would be strictly dealt with," Dr Mahat said.

Taxpayers caught evading taxes and failing to file their income statement by today will have to clear their taxes at the rate of 25 per cent along with the additional late fine. The taxpayers filing tax returns within the deadline were taxed only at the rate of 10 per cent.

Officials at the IRD said that it has prepared a list of over 500 potential defaulters based on transactions of past 10 years on real estate, vehicles, mobile telephone bills and other capital assets. The individuals in the list are suspected of owning assets disproportionate to their sources of income.

The department prepared the list by asking relevant offices such as the Land Revenue Office, Nepal Telecom Corp and others. The offices provided the department with a list of people who have respectively conducted real estate transactions and pay more than Rs 24,000 in telephone bills. A list of mobile phone users and vehicle owners are also included.

Also included in the list are professionals such as doctors, engineers, lawyers and auditors. The department is also collecting the information of government and non-government employees, social workers, teachers, businessmen, industrialists and the leaders of the political parties and others.

Tax evasion in Nepal is endemic, thwarting the government’s attempt to raise revenue. The VDIS scheme aimed to correct that. And even Dr Mahat expressed satisfaction over the latest tax mobilisation and property disclosure. With one day extension in the deadline for the Kathmandu valley, today being a holiday, revenue is likely to increase further, he said.

However, the scheme was not without controversy. Private sector entrepreneurs, including the apex body of the business community Federation of Nepalese Chamber of Commerce and Industry (FNCCI), had strongly flayed the campaign. However, the Finance Ministry source said that the private sector at the late hours cooperated with the government’s campaign. "And the results were satisfactory," he said. Property worth Rs 3.6 billion was disclosed during the VDIS period.

Finance Minister Mahat also informed that the government is mulling to introduce new tax proposals to further strengthening the tax administration. The thrust would be to control revenue leakage and to bring the potential taxpayers under the tax net. However, care will be taken to ensure that taxpayers are not burdened at a time when the economy is fledging through a slowdown, he asserted.

Inferno burns carpet worth Rs 25 m

By Seema A. Adhikari

KATHMANDU, Jan 13: An inferno lashed through the interior of a carpet godown in downtown Kathmandu Sunday afternoon, gutting hand-made carpets and property worth millions of rupees. The blaze started around 2:30 p.m. and continued for three hours before it was put off by the fire fighters and security personnel.

The cause of the huge fire in the godown of Ananda International Oriental Decoration, Bhotebahal, however, was not known, but preliminary speculations suggest that a short circuit could have triggered the fire. Property damaged by the inferno has been estimated at Rs 25 million. "We were informed at about 2:40 p.m.—some 20 minutes after the fire actually started—and when we reached the site, there was nothing left except huge flames and thick smokes from every single holes of the godown," a fire fighter who refused to give his name said.

"The situation was so horrible that we could not decide what to do and how to put off the blaze," said a Royal Nepal Army officer, who was leading his army personnel at the site.

"We were forced to demolish the doors and walls of the building to get in there."

More than 500 security personnel, including members of the Royal Nepal Army, the Armed Police Force and the Nepal Police, were mobilised at the site. The fire fighters were aided by a dozen fire engines that rushed to the site from Kathmandu, Bhaktapur, Lalitpur and the Tribhuvan International Airport.

Jeevan Kumar Pradhan, the Principal of Morning Glory High School, which was also affected by the inferno, claimed that the fire also damaged his school building. The damaged, he added, was caused by the excessive heat.

"Two windowpanes of the building have been completely broken and we estimate the loss of property at around one million rupees." The walls inside have also been ruptured due to the excessive heat, the Principal said.

Superintendent of Police at the Police Headquarters, Sagar Thapaliya, who was investigating the site, said the investigations are underway. The cause of the fire could not be immediately known as almost all the property and the building was reduced to a cinder, he further said.

"It could be due to the short-circuit inside the godown," he added. However, Rajkumar Lohia, the owner of the godown, dismissed speculations that a short circuit could have caused the fire.

Vajpayee, Musharraf in ‘Catch-22’ situation

By Damakant Jayshi

KATHMANDU, Jan 13 : The "groundbreaking" message of Pakistani President Gen. Pervez Musharraf through nationally telecast address on Saturday, so hailed by the West, has predictably failed to cut much ice in arch-rival India.

India has "cautiously welcomed" the address but has slammed the General for reiterating his country’s "moral and diplomatic" support to the Kashmiris’ "right to self determination." It has also blasted Pakistan for failing to deliver on the list of 20 alleged terrorists wanted in India, whose names were made public by the Atal Behari Vajpayee government on Saturday.

But hidden among those posturing is indication that India, finally, is also cooling down its rhetoric. Indian External Affairs Minister Jaswant Singh, providing India’s response to the Musharraf speech, said India was willing to give more time to Gen. Musharraf to match his commitment with action, as far as his crackdown on militants were concerned. "I’d like to give all due time for effective implementation of what Gen. Musharraf has announced," Singh told a news conference.

With the stakes sky high between the two nuclear-armed neighbours, both Gen. Musharraf and Indian Prime Minister Atal Behari Vajpayee are in a Catch-22 situation. Vajpayee cannot appreciate as much as he likes the bold move by his embattled neighbour, who is walking a tightrope between India’s somewhat belligerent posturing and clamours from fundamentalists back home.

Had the address come after mid-February when the crucial elections in India’s largest populous state of Uttar Pradesh will take place, it could have received the response it deserved from India. But had the General waited that long, the prospects of fourth war between the two South Asian nations could not have been ruled out. Already both nations have massed their troops along the Line of Control (LoC) separating Kashmir, the perennial bone of contention between the two.

The electoral battle in Uttar Pradesh, with more than 80 parliamentary seats in the Lower House and more than 400 seats which are crucial for the Upper House elections, is in its feverish pitch with the Congress (I), Samajwadi Party and Bahujan Samajwadi Party turning on the heat on Vajpayee’s ruling BJP. Vajpayee cannot afford to be perceived as "soft" in its dealings with Pakistan if the BJP hopes to fare well in the UP elections.

Back in Pakistan, the issue of Kashmir cannot be ignored by Gen. Musharraf if he is to continue in power. Even in his speech, Gen. Musharraf admitted that Kashmir runs in the blood of Pakistanis. But departing from earlier stance, he said his government would not tolerate any terrorism in the name of Kashmir, a position long sought by India.

So far India has not given the expected reprieve to Musharraf. All the gestures by Islamabad have so far been termed "inadequate" by New Delhi.

"Pakistan has only stated its intention. Let it first walk the talk," Singh said. Referring to the ban on two Islamic militant groups that India accuses of attacking the Parliament in New Delhi, Singh said India was "looking forward to full implementation of this measure" so that members of the groups do not continue their activities under other names.

Gen. Musharraf has, in fact, been seen to be doing what Vajpayee said he would do: go more than half the distance if Pakistan took "appropriate" steps to curb "cross-border terrorism". Even on Sunday, his External Affairs Minister Singh quoted PM Vajpayee as saying, "For every one step Pakistan takes we will take two."

And in yesterday’s televised address, Gen. Musharraf almost risked his position inside his own country by lashing out at religious fanatism and extremism which has plagued the impoverished nation for over two decades now.

It can be said that India has not taken any steps, at least as far as matching Musharraf’s address is concerned.

First ‘beating heart’ bybass surgery in Nepal!

Post Report

KATHMANDU, Jan 13: Doctors at a private hospital in Kathmandu have performed Nepal’s first "beating heart" coronary artery bypass surgery (CABG).

The NORVIC-Escorts Health Care and Research Centre at Thapathali claimed that its doctors performed the extremely complicated surgery on Amrit Lal Thapa, 78, of Balaju on January 6.

The surgery was conducted by a team led by chief surgeon Dr Naresh Trehan (senior cardiac surgeon and executive director of the Escorts Heart Institute and Research Center New Delhi) and cardio-vascular surgeon Dr Damodar Pokharel of NORVIC Nepal.

Thapa, talking to The Kathmandu Post, said, "Earlier I was told that I should go to Delhi. But I became lucky when they decided to perform the operation here."

The CABG surgery is a procedure to restore blood supply to the heart musculature by grafting a blood vessel from the leg or the chest. According to experts, it costs at least Rs 4-5 lakhs for a Nepali patient to have the surgery conducted in Delhi. But NORVIC officials said the cost of Thapa’s surgery came to around Rs 2-2.5 lakhs.

"During the surgery, we let the heart beat normally while we operated on a part of it, without the use of heart lung machine", said Dr Pokharel, the Nepali doctor in the operating team.

"Thus the beating heart surgery is less painful, safe and quick compared to the conventional type of operation," he added.

Some Nepali experts have, however, pointed out that the surgery cannot be called a purely Nepali affair since it was performed by a team led by an Indian doctor. But Dr Pokharel asserts that many has many cardiac surgeons who can perform the surgery if the equipment are available.

"In the success of this surgery too, we could do it because of the equipment called the "retractor" which is not available anywhere else in Nepal," he said.

Spokesperson at the hospital, R K Mainali, said that in three months time, the center would be ready to start the CABG surgery on a regular basis.

With the success of the "first" surgery of this kind, surgeons at the NORVIC say that with all the latest technical equipment, facilities and experts in the country, Nepali people do not at all need to go out of the valley for treatment, except for a heart transplant.

Parent Kamaiyas count on daughters’ earnings

Kamal Panthi

GULARIYA, Bardiya, Jan 13 : Itbare Tharu of Manau VDC is anxiously waiting for his daughter to return home after serving as a kamlari (domestic servant) to a landlord for the last one year.

Itbare is hopeful that his daughter’s income will help the family celebrate the annual Maghi festival on January 14, an especially auspicious occasion for the Tharu community. This is the only time of the year when Tharu families get a chance to be together.

The rest of the year they are serving their respective landlords, and during Maghi, they exercise their traditional right to either renew or cancel the year’s contract with their masters. Maghi is also the time when the Tharus settle their debts, and enter into new deals.

During Maghi, the Tharus, rich or poor, are busy merry-making and wishing each other a great year ahead. All this is accompanied by pork, without which Maghi is incomplete. The people of this community are the followers of Lord Shiva the Destroyer, and worship Him for protection from all kinds of evil and hardship.

Raj Kumar Tharu from Shivapur VDC-6 is also anxiously awaiting his eldest daughter’s return. He is hard off, without money or grains to mark the festival, and is hoping that his daughter’s income will bale him out. But he also knows that his daughter’s meagre income would not be sufficient for the festivities.

As this is the time of the year for new deals, Raj Kumar is planning to send her second daughter to a landlord in Nepalgunj. He says he is compelled to do so since the eight kattas of land he owns cannot help feed his 11-member family.

"I have no way out other than to send my grown-up daughters to landlords as domestic servants," says Raj Kumar.

There are hundreds of Tharu children working as domestic helps in Nepalgunj, Dang, Surkhet, Butwal, Pokhara and Kathmandu. These are alien towns for these children plucked away from their familiar surroundings of home. For these children who have never attended school of any kind, life is tough and at the mercy of their owners. Even while sick, the contract forbids them from visiting their parents. The psychological trauma that these children undergo are immense, as most landlords treat them inhumanly.

The Tharus are also vulnerable to being cheated by some landlords who don’t honour the contract, most often in the form of not paying the agreed amount. Says Gopal Tharu, a former Kamaiya of Patabhar VDC, who sent his daughter to a Kathmandu master, "The landlord has not paid my daughter what was promised."

It’s the Tharu community from where the Kamaiyas come from. Although it is touted that the Kamaiyas have been freed from bonded labour, unofficial statistics and reports say otherwise. There are roughly around 800 Bardiya children (420 boys and 387 girls) working as domestic servants in the towns of Nepal, says Mukti Bahadur Swar, Member Secretary of Bardiya District Land Registration Committee.

And there are many more Kamaiya children from other Terai districts—Dang, Banke, Kailali and Kanchanpur—who have been sold off as domestic labour. These mid-and far-western districts are home to around 15,000 Kamaiya families who are living a life of misery and starvation. On July 17, 2000, the Kamaiyas were officially declared free from the clutches of bonded labour. But the hard fact is that they are still being sold and bought.

Activists caution PM against rights violation

Post Report

KATHMANDU, Jan 13 : A delegation of human rights activists from 17 different organisations met Prime Minister Sher Bahadur Deuba today and presented him a memorandum at his residence at Baluwatar, a statement issued jointly by the activists states.

The delegation of 18 activists informed the Prime Minister about various incidents of rights violations during the operations conducted by the security forces during the emergency.

The Prime Minister was informed about the fact that many innocent and unarmed people were suffering from the armed operation of the security forces and that the behavior of some of the security personnel violated the constitution. The activists complained that at times even human rights activists were being mistreated by the security forces.

The delegation strongly condemned "attempted kidnap" of Subodh Raj Pyakurel, the General Secretary of INSEC, a human rights organisation, by some security personnel in plain clothes, a few days back.

According to the statement, the Prime Minister reiterated his commitment to take this matter seriously.

The statement adds that the delegation also proposed formation of an independent national body to inform the Prime Minister about the situation in the country and asked to allow the activists to go to places where the security persons are conducting operations.

One killed, 14 arrested

Post Report

KATHMANDU, Jan 13: Security forces intensifying the crackdown against the Maoist "terrorists" shot dead one rebel and arrested 14 others in their search and destroy operation throughout the country on Saturday, said a press release issued here today by the Defence Ministry.

According to the release, armed forces gunned down a Maoist in Hatiya area of Baglung district. The slain has not been identified yet.

The joint security forces of Royal Nepal Army (RNA) and Armed Police Force (APF) also arrested over dozen of suspected rebels across the country on Saturday.

Altogether 14 suspected Maoists were arrested from the four districts of Salyan, Bardia, Udayapur and Chitwan. They were taken into custody and are currently being investigated, added the release.

Meanwhile, our district-based correspondent in Dolkha said that rebels shot dead a civilian in Jiri. The deceased has been identified as Hemanta Kumar Pradhan. It is learnt that he was a sportsperson of the area.

Likewise, in Guleriya, Security forces exchanged fire with the rebels in Bhurigaun area, Bardia. The clash which lasted for half and hour started after the rebels hurled the bomb and opened fire at the Area Police Office (APO), Bhurigaon.

It is learnt that Maoists were compelled to flee the scene after the security forces comprising of APF and RNA were mobilized at the site. According to the APO, no causalities were reported in the incident.

Similarly, correspondent at Dang said that RNA rummaged the residence of Sub-editor of Sabhya Sathi weekly, K.P Masal.

Oppn not yet convinced with broader democratic alliance

Post Report

KATHMANDU Jan 13: Though the President of the ruling Nepali Congress Girija Prasad Koirala has expedited his campaign for making a broader democratic alliance as an only outlet for the problems dogging the country, the opposition political parties are not convinced on the move yet.

His concept of the alliance, on the one hand, has been labelled "unnecessary step" by his own party leader, Krishna Prasad Bhattarai, while others criticised it as "vague".

Leader of CPN-ML, R K Mainali said that the process of formation of democratic alliance has got obstacles from within the ruling party and not from opposition as Koirala has not yet been able to get his concept endorsed in his party’s Central Working Committee.

"Party President Koirala had said the opposition parties that he would call another all- party meeting to discuss the idea in detail after the concept was endorsed by party CWC", Mainali said, adding that different voices in the ruling party are the major causes for the delay in the process. "First the NC has to evolve consensus within the party," Mainali added.

There are others who are questioning the concept. As Vice- president of Rastriya Prajatantra Party Dr. Prakash Chandra Lohani said, "We have not understood the concept of broader democratic alliance." Lohani also said that the party was standing for a common strategy to combat the present problems and put forward the concept of wider national consensus but was not still clear about Koirala’s concept and motive behind it.

The secretary of parliamentary party of the ruling Nepali Congress, Benup Raj Prasai, however disagreed with Mainali and made it clear that the process has got momentum and expressed his hopes that recent agreement between the ruling and main opposition parties to form a joint committee to monitor the situation developed after the imposition of emergency and meeting with RPP and Sadbhawana party scheduled for Monday would also pave way for formation of the alliance.

The opposition parties are arguing that the proposal of a broader democratic alliance that Koirala has been floating has many ambiguities even as it has been largely misinterpreted.

They also argue that there was no ground to rely on Koirala since, as they claim, he has deceived them many times in the past by breaching the agreements made with them.

The opposition parties, on 24 December, however, principally agreed to the proposal that came from Koirala for making a common agenda to combat the problems in all sectors of the society, including socio- economic and political field. But they are seeking a concrete and written proposal.

The leader of the main opposition party in the parliament, Madhav Kumar Nepal, at a programme in Biratnagar has recently commented Koirala’s move as a bid to regain the premiership and thus could not be relied on.

But Koirala has already made it clear that the motive of the move was not to topple the government but a new initiative to guide the country to a right way while forgetting past mistakes.

Professor Lok Raj Baral also said that Koirala, in his meeting with the intellectuals , had made it clear that the motive was not to gain the premiership. " If it was a move to thrash up a common strategy among the parties in the field, there is no place to make suspicions", Baral added.