August 11: In order to improve the taxation system, the government started its homework to implement the tax-related programs announced in the budget for the current fiscal year (FY 2023/24).

Finance Minister Dr Prakash Sharan Mahat had announced while unveiling the budget on May 29 that the tax payers should pay taxes every month and the details should be submitted quarterly.

The Inland Revenue Department (IRD) under the Ministry of Finance has already started homework to implement this arrangement. Officials of the department say that homework has been started to develop the currently operating online system in accordance with the budget.

According to the Director of IRD, Raju Prasad Pyakurel, the current online system is not developed in such a way that the records can be maintained on a quarterly basis. For this, the core team of the department is making necessary arrangements.

Taxpayers who are registered for value added tax and have annual turnover of up to Rs 10 million are currently required to submit their tax returns and their details every month. After the system upgrade, taxpayers will be able to submit tax returns and tax statements every 4 months.

Likewise, homework is being done to form a high-level committee for reforming the existing tax system. Department sources said that a high-level committee will be formed within the next week and will start work immediately. The department is also going to advance the work of interconnection and automation of the institutional information systems by integrating the financial transaction information.

The budget for this FY has stated that the government will strengthen the information system and set the minimum limit of the transaction amount according to the nature of the transaction. Similarly, it was announced that tax payers who transact more than Rs 250 million per year will be included in the central invoice monitoring system in order to compulsorily issue invoices through the electronic system. Officials of the department say that they are making necessary preparations to implement it.