IRD had targeted to collect income tax worth Rs 157bn in the first half of the current fiscal year. However, it succeeded in collecting only 74.30 percent of the target i.e. Rs 116.79bn during this period.
As the income tax collection declined, the department suspects that taxpayers are not filing statements. The initial assessment of the department also showed some taxpayers did not file income statements. According to the department, taxpayers are still filing their VAT returns with the tax office but the income statement and tax have not been filed so far. Raju Pyakurel, information officer of IRD said the department is collecting detailed information. "After the tax collection remained lower than the target, we did a preliminary study about it. While taxpayers were doing business, it was seen that income statements and tax details were not filed," he said, "Hence, we have initiated further study." The department has recently issued a notice requesting such taxpayers to file their income statements and tax as soon as possible. The department has warned that if income tax statements are not filed, taxpayers will be investigated and action will be taken according to the prevailing law. Dirgharaj Mainali, director general of IRD, said that a notice has been issued to taxpayers requesting them to file income statements and taxes. "Taxpayers used to delay in filing the details even earlier. This time also, some taxpayers have not filed income statements," he said, " This is in the interest of businessmen. Because, the more they delay in filing statements, the more fine they will have to pay." According to Mainali, the department has also requested the private sector organizations for facilitation. "We have requested the FNCCI and other business organizations to facilitate and they are positive about it," he said, "We will also formally and informally urge the concerned businessmen through tax offices." The department officials say the decline in tax filing could be due to the slowdown in economic activities. As businesses grapple with multiple issues ranging from decreased demand to higher interest rates, and price rises, the cash flow in the market has declined. A senior official of the department said that the number of taxpayers filing statements may have decreased due to these reasons. "Taxpayers may also be thinking that they would pay the tax amount later." Taxpayers can submit only the income statement for now. There is also the facility of paying taxes in installments," said the official.
