Tax avoiding assets to be seized

BY A STAFF REPORTER

Kathmandu, Nov. 7: Finance Minister Dr. Ram Sharand Mahat Tuesday said the government would confiscate the property of the individuals and firms in case they fail to declare their income and pay the tax by mid-January.

"The programme to be implemented according to the provisions of the Financial Act-2058 will help bring all the taxable income into the tax net," Dr. Mahat told a press conference at the Finance Ministry.

The programme is expected to bring all the taxable income earned up to 2057 Ashad into the tax net.

The scheme also targets the people who would not like to reveal the source their income. They can simply declare their income – whatever the source - and pay 10 per cent tax to the government to make their earning legal.

"The income that does not come within this tax net will be confiscated," Dr. Mahat clarified. "The government will excuse nobody trying to evade the tax." Dr. Mahat however declined to disclose the amount of revenue the government would raise from this scheme.

Minister Dr. Mahat said the income of the taxpayers falling under this category would not be disclosed except for the concerned tax officer. Asked whether the tax officers would not take advantage of the cases, Dr. Mahat said the ministry had already developed a monitoring mechanism adding it was in action.

Dr. Mahat also briefed on the code of conduct for the tax administrators and financial regulation.

The objectives of the code of conduct for the tax administrators include dedication to work, improvement in morality, impartiality, responsible and cordial behaviour.

"The tax administration will respect the taxpayers, tax administrators will have a special dress code. The tax administrators will not be allowed to meet with the taxpayers except in relation to official work," Dr. Mahat said.

The employees of tax administration will have to give the details of their income by the end of every fiscal year.

The financial regulation states that the variation order should not exceed 15 per cent of the initial cost, emphasises on the need to give priority to the domestic products, and advocates for three-yearly budget system.

Dr. Mahat informed that 116 complaints were filed at the Finance Ministry after it introduced the hot line in order to check financial irregularities. "It has been instrumental in combating illegal activities."

He said the country’s economy had faced a setback owing to June 1 Royal Palace incident, Maoist movement and international terrorism.