Tax arrears are coming up: The remaining amount has reached 94.95 billion

Kathmandu. In recent years, the outstanding tax arrears in Nepal have started to pile up. According to the Internal Revenue Department, by the end of the financial year 2081 and 2082, the outstanding amount including interest, additional charges and late fees has reached 94.95 billion rupees. Lately, there has been an increase in taxpayers' dissatisfaction with the tax assessments made by the tax offices. According to the department, the disputed amount, which is under administrative review at the Internal Revenue Department and on appeal at other judicial bodies, has reached 1 trillion 80 billion 10 million rupees due to taxpayers not being satisfied with the tax assessment made by the tax office.

In the previous year, against the target of 22.76 billion in income tax, only 8.71 billion was collected, which is 38.29 percent of the target. Against the target of 16.33 billion for value added tax, 10.33 billion was collected, which is 63.28 percent of the target.

According to the Department of Internal Revenue, 21.39 billion has risen 978.1 percent of the income tax target of 27.38 billion for arrears adjustment, while 18.17 billion has been adjusted for value added tax with 22.29 billion adjusted and 122.63 percent progress. While the target of recovery through legal action was set at 4.39 billion, only 1.79 billion was recovered in the previous financial year, which is 40.77 percent progress compared to the target.