Govt Approves Tax Rebate of Rs 34 Billion in Last 7 Years

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Govt Approves Tax Rebate of Rs 34 Billion in Last 7 Years

December 5: Looking at the statistics of the last seven years, the government has refunded around Rs 34 billion of tax amount.

According to the Inland Revenue Department, the government has released Rs 33.69 billion for tax refund claims of Rs 57.49 billion between 2071 BS to 2078 BS. The department informed that the number of individuals claiming tax refunds has increased.

According to the data of the last fiscal year 2077/78, the department approved the release of Rs 3.95 billion as refund out of the total claims of Rs 19.24 billion. The department rejected the claims made for tax refund of the remaining Rs 15.29 billion.

Seven years ago,  the government had released Rs. 5.5 billion as tax refund out of the total claims of Rs 9.91 billion. The government has been providing tax rebate especially to diplomatic missions and for subsidies announced by the government.

Lately, the number of claims for tax refund from diplomats has also been increasing. Out of the total tax refunds made in the last fiscal year 2077/78, only Rs 1.25 billion were refunded to diplomatic missions and diplomats.

Raju Prasad Pyakurel, information officer of the department, said that tax refund is less compared to the claims made because the claimants do not submit the proper invoice and also do not complete the required process.

According to him, Article 25 of the Value Added Tax Act, 2052 BS has a provision to refund taxes to diplomats and diplomatic missions if they make claims within 3 years from the date of transaction.

According to the department, the government has refunded the tax paid by foreign tourists on purchases, re-exports, contracts, or contracts paid by the pharmaceutical industry. 

Former joint secretary Nirmal Hari Adhikari says there has been an increase in revenue exemption lately. In addition to the exemptions provided by the tax law and the financial act of the year concerned, the scope of revenue collection seems to have shrunk due to the exemption of revenue in line with the decisions taken by various government bodies and institutions, he shared. 

He added that it is necessary to stop the trend of arbitrary tax withdrawal based on the decisions of the Council of Ministers seen in recent years.







 

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