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June 9: Private sector has urged the government to not impose penalty or fine with businesses for failing to file tax details or pay their taxes in time.
Issuing a joint statement on Wednesday, Federation of Nepalese Chambers of Commerce and Industry (FNCCI), Confederation of Nepalese Industries (CNI) and Nepal Chamber of Commerce (NCC) have asked the government to not penalize or fine businesses who cannot file their tax details and pay revenue to the government in time, citing restriction on movement due to prohibitory orders imposed in most parts of the country.
“While most of the industries and businesses have not been able to operate due to current adverse circumstances, even those who are in operation have not been able to supply their products in the market and collect their money,” read the joint statement of three umbrella organizations of businesses and industries across the country.
“Taking into consideration this adverse situation, we request the government to not charge any penalty or fine to businesses or enterprises that could not pay their tax revenue,” added the statement.
Stating that the lockdown and prohibitory orders imposed to contain the second wave of coronavirus have brought businesses and industries to a grinding halt, three private sector organizations have asked the government to be lenient on imposing penalties for those businesses and industries that are late on tax payment.
Nearly 70 percent of businesses and enterprises are estimated to have been impacted by the prohibitory orders enforced to combat the second wave of coronavirus, according to the joint statement.
However, these organizations have also urged enterprises and industries which are in operation and can pay their taxes to settle their tax liabilities like in the last fiscal year.
The joint statement of the private sector organizations comes amid looming deadlines for businesses and enterprises for filing tax details as well as pay income tax (mid July), value added tax (July 9) and excise duty (July 9).
Similarly, they have also urged the government to prioritize vaccination to entrepreneurs, businesspeople and their staff who have their direct roles on economic activities and protect the economy from the pandemic, implement the budget and achieve the economic growth target.
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