-  Monday 28 September 2020

Govt plans VAT rebate

KATHMANDU,  With an aim to accelerate VAT enforcement to the retail level by encouraging people to demand VAT registered receipts, the government has decided to provide rebate of one percentage point on VAT added receipts.
A government source informed the Post that a cabinet meeting held on Thursday took the decision, which would be made effective from Monday. As per the latest decision, buyers would have to submit VAT registered receipts to receive the rebate. With this decision, the effective rate of VAT has come down to 12 percent from the existing 13 percent.

The source further said that the Ministry of Finance was working on detail procedures of the rebate process. The new decision has also arranged a lump sum rebate for the small purchasers by submitting the receipts of the VAT applicable purchases done over a time period. 

The government has not yet decided on how long the scheme would be offered, said the source. The government has also decided to appoint 1,000 tax assistants to facilitate the rebate process, initially for three months. “The process of recruiting the tax assistants, who will get a monthly remuneration of Rs 5,000, will begin soon,” said the source.

He also said the decision of recruiting the tax assistants was taken mainly due to lack of government employees for the effective implementation of the scheme.

According to an estimate, just around 40 percent of total transactions are done through the VAT registered receipts. The latest scheme aims to increase the ratio to 80 percent, said the source.   

The Kathmanud Post

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