Private Sector Urges To Resolve Tax Duplication

Private sector has urged the government for resolving tax duplication. Issuing a joint statement on Wednesday, Federation of Nepalese Chamber of Commerce and Industry (FNCCI), Nepal Chamber of Commerce (NCC) and Confederation of Nepalese Industry (CNI) urged the government to make tax collection by the local levels more effective and systematic.
“We urge the governments at all levels to implement the law in a way that it wouldn’t overburden the private businesses,” read the statement. According to them, there are still problems with the revenue rights handed over to the provinces and local bodies such as entertainment tax, advertisement tax and land tax. They have urged the National Natural Resources and Fiscal Commission, Inter-government Fiscal Council, Provincial Council, Municipality Association of Nepal and National Association of Rural Municipality in Nepal to resolve the issues related to taxation. The business associations have demanded to create uniformity in tax rates imposed by the local bodies, and it should be collected by them not through a contract.
Likewise, the private sector requested the central government to provide unique codes to the local bodies and make a provision to deposit the tax in the bank account on the basis of the code. “The money deposited in the bank account should be distributed to the provinces on the basis of existing laws. There should be a one-door system to collect taxes in order to make the process transparent,” read the statement.