'Govt is all prepared to penalise tax evaders'

A senior official at the Ministry of Finance (MoF) has said the government will initiate action against those who fail to comply with the Voluntary Declaration of Income Sources (VDIS).

Speaking at an interaction programme held in the capital on Friday, Krishna Hari Baskota, revenue secretary at the ministry said," We are all set to strictly penalize those who fail to declare their income and pay a 10 percent tax under the VDIS till March 11, 2009."

The government extended the deadline for the declaration of income till mid March to allow more people to declare their income as per the request of the private sector.

"The government is constantly reminding the tax evaders about their financial obligation to the state and their property will be confiscated if found guilty," he further stated.

He also divulged that since the extension of VDIS deadline by one month (March 11) some 129 people have disclosed their property worth Rs 410.6 million and paid 40.10 million to the government as tax.

Meanwhile, the Inland Revenue Department (IRD) has lately come up with the concept of a flying squad to trap tax evaders.

The IRD decided to form such squads at the district level too where the team will be headed by the chief of the Inland Revenue Office.

The squad will take action against those avoiding paying income tax, excise duty, valued added tax (VAT), health service tax and education service tax. nepalnews.com nd March 06 09