December 17: The government has collected over Rs 12.8 billion in revenue from banks and financial institutions within two days.

Following the government's direction to authorities to collect the revenues generated from bargain purchase gains through the premium of Follow-On Public Offers (FPO), mergers and acquisitions, and the sale of auction shares, Rs 12.8 billion was deposited in the state coffers.

The fund was deposited in the state coffers by Friday and Saturday (4 pm), said Dirgha Raj Mainali, the Director General of the Inland Revenue Department. The deadline for tax payment was Saturday midnight, and those who paid by this date were exempted from fines.

The Office of Auditor General had been urging the government to recover revenues from FPO premiums, bargain purchase gains, and auction share sales since its 57th annual report in 2077 BS, citing potential tax evasion.

Despite the office's persistent recommendations in four consecutive reports, the Ministry of Finance and the Inland Revenue Department had initially ignored the issue.

In response to the matter raised in the 60th report, Finance Minister Dr Prakash Sharan Mahat introduced a provision. Companies paying taxes in premiums of FPO, bargain purchase gains of mergers and acquisitions, and auction share sales by December 16 would be exempt from fines and interests. This move aimed to incentivize timely revenue payments.

However, 16 commercial banks opposed the minister's decision, challenging it in the Supreme Court, arguing that taxing the bargain price of FPO and mergers and acquisitions, with exemptions on fees and fines, went against the constitution.

 On Thursday, the constitutional bench, led by Chief Justice Bishwoambhar Prasad Shrestha, and comprising justices Ananda Mohan Bhattarai, Sapana Pradhan Malla, Sushmalata Mathema, and Kumar Regmi, annulled the writ.

Following the annulment, banks and financial institutions had deposited the specified amounts into the state coffers. (RSS)