Finance Minister Surendra Pandey on Wednesday directed all the government employees to register with permanent account number (PAN) for taxation purpose. He also said the government might freeze salary if the employees did not register with PAN.
Pandey was in Dharan on Wednesday to attend regional workshop on control of revenue leakage. "I will finalize the actions to be taken against the employees not complying with the mandatory PAN registration as soon as I return to Kathmandu," he said. To deal with the non-compliers, Pandey said the Ministry of Finance was mulling over initially halting the payment of meeting allowances that the employees are supposed to get. Ultimately it will go to the extent of halting payment of salary to the defaulters, he added. "A circular to this connection will be issued soon. Hence, I urge all the employees to comply with it," said Pandey.
On the occasion, the Finance Minister even distributed PAN to journalists and employees of various public and private institutions. He also appealed to the businessmen and all income earners to register with PAN, saying that it will help government know how individuals and firms are contributing in revenue mobilization. "By getting PAN number, you can get tax clearance certificate at one go, something which will establish your creditworthiness and enable you to enjoy special incentives from the state," he said.
Addressing the function, Pandey expressed his concerns over prevailing practice of undertaking realty transactions with heavy under-valuation. "To address this issue, we are discussing on a provision whereby the government can buy a land in case the deal is heavily under-valued by paying 5 percent additional amount to the seller," said Pandey.
The Finance Minister further said that the government was also discussing over annulling the existing provision that allows transfer of ownership as gifts. This provision frees both the donor and recipient from various tax liabilities. He further added that the government was also discussing on possibility of introducing health insurance scheme and education loans for certain targeted groups.
Source:Republica
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Showing posts with label General Category. Show all posts
Showing posts with label General Category. Show all posts
Saturday, January 16, 2010
NRB Left NBB Management
Nepal Bangladesh Bank Limited has concluded its 12th, 13th, 14th and 15th annual general meeting at Rastriya Naach Ghar on 13th January 2010 (2066 Poush 29). The NRB has handed over the management of bank to NB bank. The New board will formally operate its operation from tomorrow. The AGM has appointed Baskota and Company as its auditor for the current fiscal year. The new board consists Mohmad Ufar Rahman, Ifardin Ahamad, Laxmi Bahadur Shreshta, Tirhta Man Shakya, Indra Bahadur Thapa, Bishnu Nath Adhikari and Amrit Nath Regmi.
According to the annual financial report (2065/66) of the bank, it has Rs. 1.8603 billions share capital and holds Rs. (748.0725) millions in its reserve and surplus. Likewise, it had collected Rs. 9.9976 billions as deposits. The operating profit of the bank was Rs. 710.301 million and net profit at the close of fiscal year was Rs.2.1581 billion. The hefty surge in net profit for the previous fiscal year was primarly due to the collection from write back from provision of possible losses.
There was in fact, vary perception regarding the management of NRB and its role to handle the NB Bank. Some blamed the leadership, corporate and governance for the present situation of NBB while some said it's due to unclear and controversial provision of NRB. However, the new management has given words to present the dividend in near future which is bunged almost for five consecutive years.
Source:Jamb News Service
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According to the annual financial report (2065/66) of the bank, it has Rs. 1.8603 billions share capital and holds Rs. (748.0725) millions in its reserve and surplus. Likewise, it had collected Rs. 9.9976 billions as deposits. The operating profit of the bank was Rs. 710.301 million and net profit at the close of fiscal year was Rs.2.1581 billion. The hefty surge in net profit for the previous fiscal year was primarly due to the collection from write back from provision of possible losses.
There was in fact, vary perception regarding the management of NRB and its role to handle the NB Bank. Some blamed the leadership, corporate and governance for the present situation of NBB while some said it's due to unclear and controversial provision of NRB. However, the new management has given words to present the dividend in near future which is bunged almost for five consecutive years.
Source:Jamb News Service
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Govt mulling policy measures to address liquidity crunch
The government is planning to adopt policy-based precautionary measures to address the liquidity crisis not affecting other various sectors. The high-level committee formed by the Cabinet to study the deepening liquidity crisis decided to adopt such measures at the committee's first meeting on Monday.
The meeting chaired by Yubaraj Khatiwada, Vice Chairman of National Planning Commission, has begun discussions to adopt policy-based precautionary measures by studying rising inflation, liquidity crisis in the financial system and external sectors. The country is facing liquidity crisis with a Balance of Payment (BoP) deficit of more than Rs. 20 billion with a decline in the growth rate of remittance inflow in the first four months of current fiscal year. In the first four months, import has increased, especially with significant growth of gold import in the country. At the same time, Nepal Rastra Bank has imposed ceiling on realty exposure for financial institutions.
"We should not create a situation where decision to solve one problem gives rise to another problem," said a member of the committee. "We should not take any hasty decision as well." The government had constituted the committee to make necessary recommendations to address the liquidity crunch. The committee comprises has finance secretary, deputy governor and experts as its members.
According to a member of the committee, decision should be taken after evaluating the internal and external sectors. "We need to have a detailed analysis of the situation," he added. The committee will be making decisions without leaving a long-term negative impact. The committee is of the view that the central bank and the Ministry of Finance should have a unanimous voice regarding the economic situation.
The committee is planning to make concrete advises to the government in the next meeting scheduled to be held in 15 days. "We can also call for meeting before 15 days to arrive at decision if need be," said the member.
Source:eKantipur
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The meeting chaired by Yubaraj Khatiwada, Vice Chairman of National Planning Commission, has begun discussions to adopt policy-based precautionary measures by studying rising inflation, liquidity crisis in the financial system and external sectors. The country is facing liquidity crisis with a Balance of Payment (BoP) deficit of more than Rs. 20 billion with a decline in the growth rate of remittance inflow in the first four months of current fiscal year. In the first four months, import has increased, especially with significant growth of gold import in the country. At the same time, Nepal Rastra Bank has imposed ceiling on realty exposure for financial institutions.
"We should not create a situation where decision to solve one problem gives rise to another problem," said a member of the committee. "We should not take any hasty decision as well." The government had constituted the committee to make necessary recommendations to address the liquidity crunch. The committee comprises has finance secretary, deputy governor and experts as its members.
According to a member of the committee, decision should be taken after evaluating the internal and external sectors. "We need to have a detailed analysis of the situation," he added. The committee will be making decisions without leaving a long-term negative impact. The committee is of the view that the central bank and the Ministry of Finance should have a unanimous voice regarding the economic situation.
The committee is planning to make concrete advises to the government in the next meeting scheduled to be held in 15 days. "We can also call for meeting before 15 days to arrive at decision if need be," said the member.
Source:eKantipur
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PEs, FCGO name their own figures
The government investment in the Public Enterprises (PE) differs in the records of the PEs and Financial Comptroller General's Office (FCGO). A representative of the Office of the Auditor General (OAG) raised this issue during an interaction with the chiefs of state-owned enterprises at the Finance Ministry last week. After the OAG expressed its concern, the Finance Ministry directed the public enterprises whose records do not match the FCGO's to reconcile the accounts by the end of the current fiscal year. "We have directed them to come clear on it," said Tanka Mani Sharma, joint secretary at the Finance Ministry.
A few years ago, the cabinet had decided to transfer shares of Nepal Industrial Development Corporation worth Rs. 47.5 million owned by Nepal Rastra Bank (NRB) to the government. Nepal Industrial Development Corporation transferred the shares from NRB to the government, but failed to inform the Financial Comptroller General's Office (FCGO) about it. As a result, the records kept by the two institutions differed.
Likewise, the government had made a loan investment of Rs. 8.2 million in Nepal Telecom in the fiscal year 2000/01. The FCGO kept a record of the investment, but Nepal Telecom did not, and so their records differed.
These are some instances provided by the FCGO about how their records have differed and need to be reconciled. There is a difference of Rs. 15.38 billion in the records of state-owned enterprises and the FCGO as of fiscal year 2007/08 which comprise both shares and loan investments of the government, shows the records of the Finance Ministry. The FCGO data shows that the government's share investment in 13 state-owned enterprises remained at Rs. 72.80 billion it was Rs. 66.13 billion in state-owned enterprises' records. Likewise, the loan investment in 12 state-owned enterprises stands at Rs. 63.95 billion as per the FCGO records against Rs. 55.37 billion of state-owned enterprises' records.
The amount of investment as shown by some state-owned enterprises is bigger than what the FCGO recorded and vice versa in some cases. The Nepal Electricity Authority, Nepal Drinking Water Corporation, Nepal Telecom and Civil Aviation Authority of Nepal have witnessed bigger differences in records.
The OAG has long been asking the government in its successive reports that the gap should be reconciled. According to an OAG report of 2008, the lack of a one-window system in investment, the failure of the investment making agency to report to the FCGO and direct investment by a government agency without going through the OAG are the reasons behind the gap in records.
The FCGO audits the financial transactions of 37 public enterprises in which the government has a 100 percent stake. "Although we continue to follow up the state-owned enterprises and FCGO to reconcile their differences in records in the run-up to preparing our annual report, they have been failing to do so," said Ramesh Raj Satyal, deputy auditor general. "It shows the accounting inefficiency of government agencies," he added.
The state-owned enterprises showing lower investment of the government in them means they have to pay less dividends to the government in case they make a profit and those reporting higher investment are paying more dividends. An official at the FCGO said that the FCGO had already sent letters to 12 state-owned enterprises two months ago asking them to reconcile their records with the FCGO records within three months.
Source:eKantipur
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A few years ago, the cabinet had decided to transfer shares of Nepal Industrial Development Corporation worth Rs. 47.5 million owned by Nepal Rastra Bank (NRB) to the government. Nepal Industrial Development Corporation transferred the shares from NRB to the government, but failed to inform the Financial Comptroller General's Office (FCGO) about it. As a result, the records kept by the two institutions differed.
Likewise, the government had made a loan investment of Rs. 8.2 million in Nepal Telecom in the fiscal year 2000/01. The FCGO kept a record of the investment, but Nepal Telecom did not, and so their records differed.
These are some instances provided by the FCGO about how their records have differed and need to be reconciled. There is a difference of Rs. 15.38 billion in the records of state-owned enterprises and the FCGO as of fiscal year 2007/08 which comprise both shares and loan investments of the government, shows the records of the Finance Ministry. The FCGO data shows that the government's share investment in 13 state-owned enterprises remained at Rs. 72.80 billion it was Rs. 66.13 billion in state-owned enterprises' records. Likewise, the loan investment in 12 state-owned enterprises stands at Rs. 63.95 billion as per the FCGO records against Rs. 55.37 billion of state-owned enterprises' records.
The amount of investment as shown by some state-owned enterprises is bigger than what the FCGO recorded and vice versa in some cases. The Nepal Electricity Authority, Nepal Drinking Water Corporation, Nepal Telecom and Civil Aviation Authority of Nepal have witnessed bigger differences in records.
The OAG has long been asking the government in its successive reports that the gap should be reconciled. According to an OAG report of 2008, the lack of a one-window system in investment, the failure of the investment making agency to report to the FCGO and direct investment by a government agency without going through the OAG are the reasons behind the gap in records.
The FCGO audits the financial transactions of 37 public enterprises in which the government has a 100 percent stake. "Although we continue to follow up the state-owned enterprises and FCGO to reconcile their differences in records in the run-up to preparing our annual report, they have been failing to do so," said Ramesh Raj Satyal, deputy auditor general. "It shows the accounting inefficiency of government agencies," he added.
The state-owned enterprises showing lower investment of the government in them means they have to pay less dividends to the government in case they make a profit and those reporting higher investment are paying more dividends. An official at the FCGO said that the FCGO had already sent letters to 12 state-owned enterprises two months ago asking them to reconcile their records with the FCGO records within three months.
Source:eKantipur
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Friday, January 8, 2010
NDEX lists 6 products for trade
Nepal Derivative Exchange Limited (NDEX) went into operation on Jan. 4 by listing six products for transaction on the market. It is the third derivate exchange company in the country. "Investors can invest in gold, silver, crude oil, copper, natural gas and heating oil on the NDEX at the moment," said managing director Santos Pradhan at a press meet on Wednesday.
Gold in amounts of 1 kg, 500 grams and 100 grams can be traded on the NDEX. Likewise, silver can be traded in quantities of 30 kg and 5 kg, crude oil 250 bbl and 50 bbl, and copper 5000 kg and 1000 kg. "Investors have to pay Rs. 75,000 for trading 1 kg of gold on our market," Pradhan said. According to him, investors are more attracted to investing in gold and crude oil. The prices of the above goods will be based on the New York Mercantile Exchange.
He said that the NDEX was studying the possibility of incorporating various agricultural products including cereal, tea, wheat, corn, jute, cardamom and yarsagumba in the list for trading and preparing the necessary physical infrastructure.
There are 25 brokers involved in helping investors to trade on the NDEX, according to Pradhan. Kasthamandap Clearing House is operating as the clearing agent. Pradhan said the company's initial paid-up capital was Rs. 50 million.
Source:eKantipur
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Gold in amounts of 1 kg, 500 grams and 100 grams can be traded on the NDEX. Likewise, silver can be traded in quantities of 30 kg and 5 kg, crude oil 250 bbl and 50 bbl, and copper 5000 kg and 1000 kg. "Investors have to pay Rs. 75,000 for trading 1 kg of gold on our market," Pradhan said. According to him, investors are more attracted to investing in gold and crude oil. The prices of the above goods will be based on the New York Mercantile Exchange.
He said that the NDEX was studying the possibility of incorporating various agricultural products including cereal, tea, wheat, corn, jute, cardamom and yarsagumba in the list for trading and preparing the necessary physical infrastructure.
There are 25 brokers involved in helping investors to trade on the NDEX, according to Pradhan. Kasthamandap Clearing House is operating as the clearing agent. Pradhan said the company's initial paid-up capital was Rs. 50 million.
Source:eKantipur
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Monday, January 4, 2010
Lakhs lost from NIC branch
A customer of NIC Bank's Gaighat branch has lost Rs. 420,000 from his account. The revelation came on Tuesday after Feroj Khan of Kalyanpur-3 of Saptari claimed that the amount was missing from his account though he neither had withdrawn the money nor had given his cheque to anyone.
The bank also has come under suspicion for making the payment for the cheque, which had six fake signatures of Khan, two colors of ink used and many other errors. "I have not given my cheque to anyone," said Khan alleging that the bank staff worked in cahoots with one Chaudhary to whose name the payment was made.
But refuting the accusation, Branch Manager of NIC Bank Lahan Birendra Thakur said it was not bank's month. According to Thakur, the fault lies with the customer for he was negligent about his checque which he lost two months ago. Branch Manager of NIC Bank Gaighat Arjun Shrestha said the bank was not responsible for any cheques lost.
Source:eKantipur
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The bank also has come under suspicion for making the payment for the cheque, which had six fake signatures of Khan, two colors of ink used and many other errors. "I have not given my cheque to anyone," said Khan alleging that the bank staff worked in cahoots with one Chaudhary to whose name the payment was made.
But refuting the accusation, Branch Manager of NIC Bank Lahan Birendra Thakur said it was not bank's month. According to Thakur, the fault lies with the customer for he was negligent about his checque which he lost two months ago. Branch Manager of NIC Bank Gaighat Arjun Shrestha said the bank was not responsible for any cheques lost.
Source:eKantipur
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Sunday, January 3, 2010
Door opens for foreign banks
The Nepali financial sector is formally open for foreign banks from today. The government has set a dateline of January 1, 2010 to open the financial sector to foreigners when joining World Trade Organization (WTO). Nepal became a member of WTO on April 23, 2004.
Nepal Rastra Bank (NRB) has set a minimum capital of US$ 30 million (equal to Rs 2.23 billion) for foreign banks to open their first branch in Nepal. NRB has further provisioned $5 million capital for each additional branch. Moreover, foreign banks are also legally bound to produce a no-objection letter issued by the regulatory authority of their home country if they want to open a branch here.
As per NRB regulations, foreign banks can only do wholesale banking in Nepal. They cannot collect deposit below Rs 100 million and cannot invest below Rs 300 million. According to NRB, foreign banks wishing to expand their service in Nepal must be at least ‘B’ rated as per the evaluation of international rating agencies such as Standard & Poor, Moody’s and Fitch.
Foreign banks are also obligated to follow the rules and regulations of NRB. They can repatriate their profits to their home country after paying taxes, fees and other liabilities as per the laws of Nepal. But they have to obtain the approval of the central bank before taking away the income.
The NRB policy also states that branches of foreign banks which are scrapped or liquidated could get their licenses scrapped in Nepal too.
Like the banking sector, Nepal has two major provisions — reduction in import duty of vehicles and protection of intellectual rights (IPR) — in three years. A per the plan, Nepal should follow international rates in import duty on vehicles in January 2012 and ensure IPR a year later.
Source:THT
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Nepal Rastra Bank (NRB) has set a minimum capital of US$ 30 million (equal to Rs 2.23 billion) for foreign banks to open their first branch in Nepal. NRB has further provisioned $5 million capital for each additional branch. Moreover, foreign banks are also legally bound to produce a no-objection letter issued by the regulatory authority of their home country if they want to open a branch here.
As per NRB regulations, foreign banks can only do wholesale banking in Nepal. They cannot collect deposit below Rs 100 million and cannot invest below Rs 300 million. According to NRB, foreign banks wishing to expand their service in Nepal must be at least ‘B’ rated as per the evaluation of international rating agencies such as Standard & Poor, Moody’s and Fitch.
Foreign banks are also obligated to follow the rules and regulations of NRB. They can repatriate their profits to their home country after paying taxes, fees and other liabilities as per the laws of Nepal. But they have to obtain the approval of the central bank before taking away the income.
The NRB policy also states that branches of foreign banks which are scrapped or liquidated could get their licenses scrapped in Nepal too.
Like the banking sector, Nepal has two major provisions — reduction in import duty of vehicles and protection of intellectual rights (IPR) — in three years. A per the plan, Nepal should follow international rates in import duty on vehicles in January 2012 and ensure IPR a year later.
Source:THT
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Siddhartha gets nod to go nationwide
Siddhartha Devel-opment Bank, which initially got a license to operate within three districts, has got the approval to go nationwide from Nepal Rastra Bank (NRB).
After the Butwal-based finance company increased its capital to Rs. 640 million, a prerequisite for a national development bank as per the Bank and Financial Institutions Act, it was given the nod to go nationwide, said an NRB official. Currently, it has been operating in Rupandehi, Nawalparasi and Chitwan.
Source:eKantipur
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After the Butwal-based finance company increased its capital to Rs. 640 million, a prerequisite for a national development bank as per the Bank and Financial Institutions Act, it was given the nod to go nationwide, said an NRB official. Currently, it has been operating in Rupandehi, Nawalparasi and Chitwan.
Source:eKantipur
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Standard Finance applies for commercial bank permit
Standard Finance Company has applied to Nepal Rastra Bank (NRB) for permission to upgrade to an A class commercial bank from its C classification. If it gets the license from the central bank, it will be the second financial institution after Kist Bank to get a double promotion to A class. Kist had been raised to a commercial bank last year.
NRB officials said although some other financial institutions had also shown interest to upgrade themselves, they have not submitted a concrete proposal. There has been a tendency on the part of financial institutions to talk more about upgrading but doing little about it. According to NRB, Standard Finance's paid-up capital stands at Rs. 1.18 billion currently which it should increase to Rs. 2 billion to become a commercial bank.
Shailesh Kumar Aryal, company secretary of the finance company, said that they would increase the capital base to the required level within this fiscal year by issuing 1:1 rights shares in February. "We have applied to NRB to get a letter of intent to upgrade our company," he said. Standard Finance was established 14 years ago.
Financial institutions now have a better chance to be upgraded after the central bank introduced the policy from this year that they could apply for upgrading before increasing their capital base. "We fix the timeline with regard to capital after the letter of intent and they must increase their capital to the level fixed by the law to get the final license," said a source at NRB. They will also have to confirm if they have a stake in other financial institutions and the number of shareholders and other details during the licensing process as per the central bank's licensing policy. "It will take at least three-four months for Standard Finance to be upgraded if it fulfils all the prerequisites on time," the NRB official said.
Source:eKantipur
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NRB officials said although some other financial institutions had also shown interest to upgrade themselves, they have not submitted a concrete proposal. There has been a tendency on the part of financial institutions to talk more about upgrading but doing little about it. According to NRB, Standard Finance's paid-up capital stands at Rs. 1.18 billion currently which it should increase to Rs. 2 billion to become a commercial bank.
Shailesh Kumar Aryal, company secretary of the finance company, said that they would increase the capital base to the required level within this fiscal year by issuing 1:1 rights shares in February. "We have applied to NRB to get a letter of intent to upgrade our company," he said. Standard Finance was established 14 years ago.
Financial institutions now have a better chance to be upgraded after the central bank introduced the policy from this year that they could apply for upgrading before increasing their capital base. "We fix the timeline with regard to capital after the letter of intent and they must increase their capital to the level fixed by the law to get the final license," said a source at NRB. They will also have to confirm if they have a stake in other financial institutions and the number of shareholders and other details during the licensing process as per the central bank's licensing policy. "It will take at least three-four months for Standard Finance to be upgraded if it fulfils all the prerequisites on time," the NRB official said.
Source:eKantipur
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DoC to study status of saving and credit co-operatives
The Department of Co-operatives (DoC) is preparing to take the service of a consultancy firm to study the financial health of selected 20 big saving and credit co-operatives operating in the capital. "As we have no technical expertise, we are inviting tenders from interested firms to evaluate the financial performance of major saving and credit co-operatives soon," a senior official at the DoC told myrepublica.com on Tuesday.
The source also said the DoC would also study the contribution of those co-operatives in national income and employment generation. Maheshwar Poudel, registrar at DoC, said they were monitoring a total of 40 big co-operatives across the country, including 20 in the capital. "We have already requested the Ministry of Finance for necessary budget to mobilize teams to monitor the operation of the co-operatives," said Poudel. Poudel, however, declined to divulge further details about the fund sought for monitoring purpose.
The DoC has already issued the first-ever financial directives for co-operatives, asking the saving and credit co-operatives to limit their housing and real estate credit to 15 percent of their total loans portfolio by the end of this fiscal year. With the enforcement of the directives, the saving and credit co-operatives will have to reduce their real estate and housing loans to 10 percent and 15 percent respectively by mid-July 2010. Of the around 5,000 saving and credit co-operatives across the country, around 4,000 are concentrated in the capital alone. Over 15,000 co-operatives are operating across the country.
As per the conservative estimate, around Rs 70 billion of deposits have been mobilized by the saving and credit co-operatives and two-thirds of the amount has been invested in the housing and real estate sector. DoC officials have been complaining about the limited manpower and resources under their disposal to monitor the functioning of all co-operatives across the country. According to Poudel, 17 of the 38 districts, where co-operatives officers have been established, don't have office chiefs. A total of 203 positions, including the posts of three under-secretaries and 16 section officers, at DoC are lying vacant.
"We are facing shortage of resources and manpower. On the other hand, we are only authorized to conduct monitoring of co-operatives. We are not authorized to take action against the co-operatives that flout co-operatives norms," Poudel added.
Source:Republica
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The source also said the DoC would also study the contribution of those co-operatives in national income and employment generation. Maheshwar Poudel, registrar at DoC, said they were monitoring a total of 40 big co-operatives across the country, including 20 in the capital. "We have already requested the Ministry of Finance for necessary budget to mobilize teams to monitor the operation of the co-operatives," said Poudel. Poudel, however, declined to divulge further details about the fund sought for monitoring purpose.
The DoC has already issued the first-ever financial directives for co-operatives, asking the saving and credit co-operatives to limit their housing and real estate credit to 15 percent of their total loans portfolio by the end of this fiscal year. With the enforcement of the directives, the saving and credit co-operatives will have to reduce their real estate and housing loans to 10 percent and 15 percent respectively by mid-July 2010. Of the around 5,000 saving and credit co-operatives across the country, around 4,000 are concentrated in the capital alone. Over 15,000 co-operatives are operating across the country.
As per the conservative estimate, around Rs 70 billion of deposits have been mobilized by the saving and credit co-operatives and two-thirds of the amount has been invested in the housing and real estate sector. DoC officials have been complaining about the limited manpower and resources under their disposal to monitor the functioning of all co-operatives across the country. According to Poudel, 17 of the 38 districts, where co-operatives officers have been established, don't have office chiefs. A total of 203 positions, including the posts of three under-secretaries and 16 section officers, at DoC are lying vacant.
"We are facing shortage of resources and manpower. On the other hand, we are only authorized to conduct monitoring of co-operatives. We are not authorized to take action against the co-operatives that flout co-operatives norms," Poudel added.
Source:Republica
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Assure Chinese investors: FNCCI president
Nepali businessmen have urged the government to create conducive environment and provide guarantee to secure Chinese investments in Nepal. The Nepali government should issue such guarantee so as to reap benefits of the deep interest that the Chinese investors have shown in investing in Nepal, said Kush Kumar Joshi, president of Federation of Nepalese Chambers of Commerce and Industry (FNCCI).
The government should assure potential Chinese investors that they will get conducive business environment in Nepal and they won´t have to face unnecessary hurdles while doing business in Nepal, Joshi said. Joshi also demanded with the government to involve private sector in understanding and decisions reached between the two countries. "The implementation of the decision reached at the government level has been weak due to lack of private sectors´ participation in the discussion stage," Joshi added and expressed his unhappiness over the lack of consultations with the private sector while setting ongoing Prime Minister´s visit to China.
We have not been able to offer attractive investment schemes to potential Chinese investors because we lacked necessary homework, he added. Joshi also underlined that the due proposed aid commitment made buy China in the past has been delayed due to lack of capacity on the part of the government to implement agreed projects.
China had committed to provide concession loan worth Chinese Yuan 200 million some four years back but the government has not been able to realize the loan amount as it has not yet finalized the projects to be financed.
Source:Republica
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The government should assure potential Chinese investors that they will get conducive business environment in Nepal and they won´t have to face unnecessary hurdles while doing business in Nepal, Joshi said. Joshi also demanded with the government to involve private sector in understanding and decisions reached between the two countries. "The implementation of the decision reached at the government level has been weak due to lack of private sectors´ participation in the discussion stage," Joshi added and expressed his unhappiness over the lack of consultations with the private sector while setting ongoing Prime Minister´s visit to China.
We have not been able to offer attractive investment schemes to potential Chinese investors because we lacked necessary homework, he added. Joshi also underlined that the due proposed aid commitment made buy China in the past has been delayed due to lack of capacity on the part of the government to implement agreed projects.
China had committed to provide concession loan worth Chinese Yuan 200 million some four years back but the government has not been able to realize the loan amount as it has not yet finalized the projects to be financed.
Source:Republica
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Fake vouchers in use to evade tax
In a typical case of financial crime, tax offices in Kathmandu of late have started encountering rising incidents of taxpayers using fake vouchers to evade taxes. The case first came to government´s notice earlier this month when Land Tax Offices (LTOs) in Kathmandu found mismatch in revenue it received through vouchers and the actual revenue amount deposited in government´s revenue account in Everest Bank Limited (EBL).
The volume of tax evasion through this practice so far is negligible, but concerned officials tipped off that it could just be start of the dangerous trend that could cost the government severely. Worse is, Department of Revenue Investigation also found incidences of entry of voucher receipt data through employees´ usernames, which are unique and protected by password, even while they were not present in the office. "This indicates of either leakage of confidential information or loopholes in the software and system with which Inland Revenue Department (IRD) operates," said a source, adding that such means of revenue evasion was never recorded in 12 year history of revenue administration modernization.
A senior official at Ministry of Finance told myrepublica.com that Department of Revenue Investigation (DRI) has already taken over the case seriously. "Investigations are still on against Chandra Oil Store in Kalopul, Rajesh Trade Concern in Kuleshwar, New Swoyambhu Oil Store in Swayambhu and Makalu Oil Store that were found using fake vouchers to evade the taxes," said the source.
Inland Revenue Department too has recently started an investigation on similar cases that surfaced in recent weeks. It has captured all previous databases as a backup and started monitoring the data entry in the system, tracking when and at what time the data are being entered. Under the existing practice, taxpayers in Kathmandu clear their tax liabilities either directly through check or by depositing the money in the government´s revenue account in EBL and submitting its voucher to the tax office. "It is too early to say wherein lies the problem and who are involved in the anomaly," said the source.
But penetration of tax-evaders into the IRD´s confidential system indicates the involvement of tax officials in the crime. Given that fake revenue vouchers have signatures and seal of the bank employees, officials do not rule out involvement of the bank staffers as well. Officials at both DRI and IRD said they are yet to find out whether such means of tax evasion is practiced only in Kathmandu or has spread in other parts of the country as well.
"Since we have already intensified monitoring the data fed in the system, we will instantly be able to know the fresh attempts to evade taxes," said the source. As for the cases under investigation, officials said they are pushing for early conclusion. MoF has instructed both its departments to take stringent actions against culprits that were found using fake vouchers to evade taxes.
Source:Republica
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The volume of tax evasion through this practice so far is negligible, but concerned officials tipped off that it could just be start of the dangerous trend that could cost the government severely. Worse is, Department of Revenue Investigation also found incidences of entry of voucher receipt data through employees´ usernames, which are unique and protected by password, even while they were not present in the office. "This indicates of either leakage of confidential information or loopholes in the software and system with which Inland Revenue Department (IRD) operates," said a source, adding that such means of revenue evasion was never recorded in 12 year history of revenue administration modernization.
A senior official at Ministry of Finance told myrepublica.com that Department of Revenue Investigation (DRI) has already taken over the case seriously. "Investigations are still on against Chandra Oil Store in Kalopul, Rajesh Trade Concern in Kuleshwar, New Swoyambhu Oil Store in Swayambhu and Makalu Oil Store that were found using fake vouchers to evade the taxes," said the source.
Inland Revenue Department too has recently started an investigation on similar cases that surfaced in recent weeks. It has captured all previous databases as a backup and started monitoring the data entry in the system, tracking when and at what time the data are being entered. Under the existing practice, taxpayers in Kathmandu clear their tax liabilities either directly through check or by depositing the money in the government´s revenue account in EBL and submitting its voucher to the tax office. "It is too early to say wherein lies the problem and who are involved in the anomaly," said the source.
But penetration of tax-evaders into the IRD´s confidential system indicates the involvement of tax officials in the crime. Given that fake revenue vouchers have signatures and seal of the bank employees, officials do not rule out involvement of the bank staffers as well. Officials at both DRI and IRD said they are yet to find out whether such means of tax evasion is practiced only in Kathmandu or has spread in other parts of the country as well.
"Since we have already intensified monitoring the data fed in the system, we will instantly be able to know the fresh attempts to evade taxes," said the source. As for the cases under investigation, officials said they are pushing for early conclusion. MoF has instructed both its departments to take stringent actions against culprits that were found using fake vouchers to evade taxes.
Source:Republica
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Agencies snub institutional channel
The tendency of workers making their ways into greener pastures abroad through individual channel has increased sharply in recent days, putting a large number of workers into the risk of different forms of exploitations and robbing them of their professional rights. Of late, manpower agencies are opting for sending workers through individual channels - under which manpower agencies will not be institutionally involved to send workers - to avoid responsibility toward workers and lessen administrative hassles at the Department of Foreign Employment (DoFE) to get approval of foreign jobs.
According to data compiled by DoFE, number of workers leaving for different labor destinations through individual channels has sharply risen to 7,171 during mid-Nov to mid-Dec from 4,636 recorded between mid-Oct to mid-Nov. During the period, 1,381 women left for foreign jobs through individual channel. Of the total 100,051 workers leaving for overseas jobs during the first five months of current fiscal year, 24,521 managed to get employment through individual contacts.
"Manpower agents won´t have any responsibility to the workers leaving through individual channels in case they face problems in labor destinations, as most of such workers are employed in informal sectors," Dr Ganesh Gurung, migration expert, told myrepublica.com on Sunday. He further informed that this trend would invite serious problem to workers as most of them would be deprived of their professional rights in their workplaces and agents cannot be liable for such problems.
"Most of the workers getting jobs through individual medium face different problems at their workplaces. They are vulnerable to different forms of exploitation and hosts of other problems," he added. Dr Gurung also said easy sending process under the individual channel was encouraging agents to switch from institutional channel.
A manpower agent, who is also the executive member of Nepal Association of Foreign Employment Agencies (NAFEA), said government employees also encourage manpower agencies to follow individual channel to send workers. "Manpower agencies are also shunning institutional channel to send workers to avoid responsibility toward workers. "Because of financial benefits, DoFE employees also encourage the agencies to send workers through individual channel," the agent added. "Employees can bargain more easily with agents while sending workers under the individual channel."
Data also shows that the number of fraudulent cases involving workers leaving for foreign jobs through individual channel is higher than those leaving through institutional channels. Kashi Nath Marasini, director at DoFE, also admits that the number of Nepali workers getting overseas jobs through individual channels is on the rise. "How can we stop workers who arrange jobs through individual channels at a time when job prospect within the country is getting slimmer?" wondered Marasini. He also said increasing relation with employers through relatives in different labor destination have also increased the chance of getting jobs through individual channels.
"We can´t stop workers from going through individual channels without amending the existing Foreign Employment Act which do not bar anyone from pursuing overseas dreams through individual channel," said Marasini. He, however, denied the DoFE employees encouraging agents to send workers through individual channels.
Source:Republica
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According to data compiled by DoFE, number of workers leaving for different labor destinations through individual channels has sharply risen to 7,171 during mid-Nov to mid-Dec from 4,636 recorded between mid-Oct to mid-Nov. During the period, 1,381 women left for foreign jobs through individual channel. Of the total 100,051 workers leaving for overseas jobs during the first five months of current fiscal year, 24,521 managed to get employment through individual contacts.
"Manpower agents won´t have any responsibility to the workers leaving through individual channels in case they face problems in labor destinations, as most of such workers are employed in informal sectors," Dr Ganesh Gurung, migration expert, told myrepublica.com on Sunday. He further informed that this trend would invite serious problem to workers as most of them would be deprived of their professional rights in their workplaces and agents cannot be liable for such problems.
"Most of the workers getting jobs through individual medium face different problems at their workplaces. They are vulnerable to different forms of exploitation and hosts of other problems," he added. Dr Gurung also said easy sending process under the individual channel was encouraging agents to switch from institutional channel.
A manpower agent, who is also the executive member of Nepal Association of Foreign Employment Agencies (NAFEA), said government employees also encourage manpower agencies to follow individual channel to send workers. "Manpower agencies are also shunning institutional channel to send workers to avoid responsibility toward workers. "Because of financial benefits, DoFE employees also encourage the agencies to send workers through individual channel," the agent added. "Employees can bargain more easily with agents while sending workers under the individual channel."
Data also shows that the number of fraudulent cases involving workers leaving for foreign jobs through individual channel is higher than those leaving through institutional channels. Kashi Nath Marasini, director at DoFE, also admits that the number of Nepali workers getting overseas jobs through individual channels is on the rise. "How can we stop workers who arrange jobs through individual channels at a time when job prospect within the country is getting slimmer?" wondered Marasini. He also said increasing relation with employers through relatives in different labor destination have also increased the chance of getting jobs through individual channels.
"We can´t stop workers from going through individual channels without amending the existing Foreign Employment Act which do not bar anyone from pursuing overseas dreams through individual channel," said Marasini. He, however, denied the DoFE employees encouraging agents to send workers through individual channels.
Source:Republica
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Inter-bank rate hits the roof as big depositors hold fund
The gravity of liquidity shortage in the banking system has deepened further, with the inter-bank bank lending rate scaling up to over 13 percent, one of the highest rates in recent years. The inter-bank lending rate last week was less than 12 percent.
Bankers told myrepublica.com that the liquidity scarcity deepened further after the four major institutional depositors postponed renewal of their bulk deposits held at commercial banks, possibly to scrutinize impacts of the recent directives of the central bank that limited real-estate plus housing loan exposures. However, an official at Employees´ Provident Fund (EPF), the largest institutional depositor, said that the some of its renewals have been postponed because it might have to provide loans worth Rs 10 billion to Nepal Airlines Corporation to buy two aircraft.
The decision of the big depositors to delay renewals of their deposits has triggered waves of panic across the banking sector, forcing major banks to announce various deposit schemes with higher interest rates to keep the deposits and lending at balance, said a banker, who preferred to be unnamed. EPF, Nepal Army, Citizen Investment Trust and Nepal Telecom that altogether hold deposits of around Rs 80 billion are the major institutional depositors in the country.
It might be because of the reaction of the institutional depositors over rumors about financial crisis that some banks might have to face following the imposition of NRB´s new limit, said the banker. The banker, who participated Wednesday´s inter-bank lending bidding, said there was tremendous demand for lending, calling for more capital injection into the money market by the central bank.
According to bankers, the market is in need of additional liquidity injection of around Rs 15 billion for the period of next three to four months. Sashin Joshi, president of Nepal Bankers´ Association said the central bank has assured the association of additional injection of liquidity to stabilize the market. "We are in constant touch with the central bank and it has dropped hint that it will bring more repo (an instrument to lend commercial banks against government bill that they hold)," said Joshi. The central bank has already injected capital worth Rs 12 billion in the running fiscal year.
Central bank officials were hopeful that liquidity shortage will start to ease down from the coming week as the speculative demand for gold has gone down after fall in its price in international market. Around 40 percent of remittance income in foreign currency was being used to import gold due to which only 60 percent of the remittance earning used to come to the central bank for exchange, thereby expanding money supply, said a central bank official. Decline in imports will slow down imports, which ultimately will channel more remittance in foreign currency to central bank, thus increasing flow of fresh liquidity in the market, the official explained.
Source:Republica
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Bankers told myrepublica.com that the liquidity scarcity deepened further after the four major institutional depositors postponed renewal of their bulk deposits held at commercial banks, possibly to scrutinize impacts of the recent directives of the central bank that limited real-estate plus housing loan exposures. However, an official at Employees´ Provident Fund (EPF), the largest institutional depositor, said that the some of its renewals have been postponed because it might have to provide loans worth Rs 10 billion to Nepal Airlines Corporation to buy two aircraft.
The decision of the big depositors to delay renewals of their deposits has triggered waves of panic across the banking sector, forcing major banks to announce various deposit schemes with higher interest rates to keep the deposits and lending at balance, said a banker, who preferred to be unnamed. EPF, Nepal Army, Citizen Investment Trust and Nepal Telecom that altogether hold deposits of around Rs 80 billion are the major institutional depositors in the country.
It might be because of the reaction of the institutional depositors over rumors about financial crisis that some banks might have to face following the imposition of NRB´s new limit, said the banker. The banker, who participated Wednesday´s inter-bank lending bidding, said there was tremendous demand for lending, calling for more capital injection into the money market by the central bank.
According to bankers, the market is in need of additional liquidity injection of around Rs 15 billion for the period of next three to four months. Sashin Joshi, president of Nepal Bankers´ Association said the central bank has assured the association of additional injection of liquidity to stabilize the market. "We are in constant touch with the central bank and it has dropped hint that it will bring more repo (an instrument to lend commercial banks against government bill that they hold)," said Joshi. The central bank has already injected capital worth Rs 12 billion in the running fiscal year.
Central bank officials were hopeful that liquidity shortage will start to ease down from the coming week as the speculative demand for gold has gone down after fall in its price in international market. Around 40 percent of remittance income in foreign currency was being used to import gold due to which only 60 percent of the remittance earning used to come to the central bank for exchange, thereby expanding money supply, said a central bank official. Decline in imports will slow down imports, which ultimately will channel more remittance in foreign currency to central bank, thus increasing flow of fresh liquidity in the market, the official explained.
Source:Republica
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Saturday, December 26, 2009
ADBL starting core banking in rural areas
Agriculture Development Bank Limited (ADBL), Worldlink Nepal and Temenos Singapore Private Limited signed a memorandum of understanding (MoU) to begin core banking system in the rural areas at the ADBL Head Office on Wednesday.
Shyam Singh Pandey, Chief Executive Officer (CEO) of ADBL, Dilip Agrawal, managing director of Worldlink , and Raju Daryani, managing director of Temenos, a software supplier Company signed the MoU on behalf of their respective organizations, said a press statement of ADBL.
On the occasion, Daryani said that with the latest software, the bank would be able to expand its network across the country and cater most modern services to its customers. He expressed his pleasure for the opportunity to work together with the ADBL.
Vijaya Swaar, chief of the Information and Communications Department of ADBL, said that the agreement with the Worldlink Nepal would be able to provide online banking system in the rural areas of the country and expand its services in the days to come.
Source: ArthakoArtha.com
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Shyam Singh Pandey, Chief Executive Officer (CEO) of ADBL, Dilip Agrawal, managing director of Worldlink , and Raju Daryani, managing director of Temenos, a software supplier Company signed the MoU on behalf of their respective organizations, said a press statement of ADBL.
On the occasion, Daryani said that with the latest software, the bank would be able to expand its network across the country and cater most modern services to its customers. He expressed his pleasure for the opportunity to work together with the ADBL.
Vijaya Swaar, chief of the Information and Communications Department of ADBL, said that the agreement with the Worldlink Nepal would be able to provide online banking system in the rural areas of the country and expand its services in the days to come.
Source: ArthakoArtha.com
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National Finance Changed to Narayani National Finance
After completing the merger process with Narayani Finance Ltd., the name of National Finance Ltd. has been changed to Narayani National Finance Ltd. and trading has been resumed for the company.
Source: Nepalstock.com
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Source: Nepalstock.com
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143 new industries sprout in Morang
One hundred and forty-three new industries have been registered in Morang district at a time when industries are closing down one after the other in the country for various reasons. The Cottage and Small Industries Office, Morang, said the process has been moved forward another four months of the current fiscal years for the operation of these industries.
The office said that on the other hand, 720 different cottage and small scale industries closed down in Morang district last year. Most of the closures happened due to lack of raw materials, frequent strikes, power shortage and stiff competition. Of the 720 industries that closed down last year, 15 industries closed as the their managements did not come up to the task of running them demand of the industrialists. Another 705 closed down due to non-operation while some other s for non-payment of renewal fees.
According to the Morang District Cottage and Small Industries Office, there was a total of 3,003 cottage and small industries in operation in the district until April of the fiscal year 2008-2009. Of these industries, 2,433 are operated by the private sector, 259 through partnership and 311 are private limited companies. Meanwhile, the office said it collected revenue Rs 1,902,071 until July 15 under different heads including industries' registration, renewal fees, additional renewal fees and sale of training kits.
Source:THT
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The office said that on the other hand, 720 different cottage and small scale industries closed down in Morang district last year. Most of the closures happened due to lack of raw materials, frequent strikes, power shortage and stiff competition. Of the 720 industries that closed down last year, 15 industries closed as the their managements did not come up to the task of running them demand of the industrialists. Another 705 closed down due to non-operation while some other s for non-payment of renewal fees.
According to the Morang District Cottage and Small Industries Office, there was a total of 3,003 cottage and small industries in operation in the district until April of the fiscal year 2008-2009. Of these industries, 2,433 are operated by the private sector, 259 through partnership and 311 are private limited companies. Meanwhile, the office said it collected revenue Rs 1,902,071 until July 15 under different heads including industries' registration, renewal fees, additional renewal fees and sale of training kits.
Source:THT
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One more parliamentary committee eyes NAC deal
Now yet another committee has started probe into the Nepal Airline Corporation's Airbus deal, which has plunged into controversy. The Parliamentary Finance Committee on Wednesday held discussions with Finance Minister and Finance Secretary regarding the NAC deal to acquire two new aircraft from Airbus SAS. The Finance Committee raised questions as to why the government guarantee was required on behalf of Public Enterprises and NAC management.
"Providing guarantee to NAC means giving guarantee for its inefficiency," said former finance minister Ram Sharan Mahat. "If the management is efficient enough, government does not need to give guarantee." The Finance Committee is the fourth governmental body to initiate probe into NAC's aircraft deal.
The Parliamentary Public Account Committee (PAC), CIAA and Public Procurement Monitoring Office are already looking into this deal. There have been talks of converting NAC into a company and inviting strategic partner in it. International Finance Corporation (IFC) had shown its interest in NAC reform. "The issue of transparency and commission is extremely important," said Mahat. "Until the management is efficient, NAC can't compete in the international market whatever aircraft it buys."
In the past, the government had to pay loans in which it had given guarantee, said Mahat. "The government had to pay the loans of Orient Magnesite, Gorakhkali Rubber Udhyog and Butwal Power," Mahat cited examples. The row between NAC general manager and chairman as to who the executive is already under the purview of court and it has affected the daily work of NAC. If the government has to give guarantee then loan and guarantee act should be amended, said Mahat.
Hari Rokka, another member of the committee said that the debate over executive of the NAC should be resolved first. "Since finance ministry has to give guarantee for the deal, said Rokka, it comes under the purview of the finance committee." He however clarified that the finance committee is interfering in the probe process initiated by Public Account Committee (PAC). "NAC needs new aircraft but its management needs to be reformed," said Rokka. The committee has called another meeting on Dec. 27.
The NAC has signed a MoU with Airbus SAS for two aircraft. The purchase process has hit a snag after controversy erupted following NAC took a hasty decision to dispatch Rs. 57.3 to the Airbus SAS as 'commitment amount'.
Source:eKantipur
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"Providing guarantee to NAC means giving guarantee for its inefficiency," said former finance minister Ram Sharan Mahat. "If the management is efficient enough, government does not need to give guarantee." The Finance Committee is the fourth governmental body to initiate probe into NAC's aircraft deal.
The Parliamentary Public Account Committee (PAC), CIAA and Public Procurement Monitoring Office are already looking into this deal. There have been talks of converting NAC into a company and inviting strategic partner in it. International Finance Corporation (IFC) had shown its interest in NAC reform. "The issue of transparency and commission is extremely important," said Mahat. "Until the management is efficient, NAC can't compete in the international market whatever aircraft it buys."
In the past, the government had to pay loans in which it had given guarantee, said Mahat. "The government had to pay the loans of Orient Magnesite, Gorakhkali Rubber Udhyog and Butwal Power," Mahat cited examples. The row between NAC general manager and chairman as to who the executive is already under the purview of court and it has affected the daily work of NAC. If the government has to give guarantee then loan and guarantee act should be amended, said Mahat.
Hari Rokka, another member of the committee said that the debate over executive of the NAC should be resolved first. "Since finance ministry has to give guarantee for the deal, said Rokka, it comes under the purview of the finance committee." He however clarified that the finance committee is interfering in the probe process initiated by Public Account Committee (PAC). "NAC needs new aircraft but its management needs to be reformed," said Rokka. The committee has called another meeting on Dec. 27.
The NAC has signed a MoU with Airbus SAS for two aircraft. The purchase process has hit a snag after controversy erupted following NAC took a hasty decision to dispatch Rs. 57.3 to the Airbus SAS as 'commitment amount'.
Source:eKantipur
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Govt to monitor realtors' landholding
Department of Land Reforms and Management (DoLRM) has started investigations to dig out possible unauthorized land holding by individuals as well as registered land developers in cities witnessing real estate bubble. The department has already mobilized land tax offices (LTOs) and land reform offices (LROs) in all major cities and urban centers to identify landowners holding huge stretch of land, exceeding the ceiling as prescribed in more than four decades old Land Reforms Act.
"We have mainly intensified the investigations at LTOs and LROs in the Kathmandu Valley, Pokhara, Bhairahawa, Chitwan, Birgunj, Sunsari, Biratnagar and Jhapa, among others," said a source. The department has asked the offices to mainly dig out property holding of the registered land and housing developers and also dig out possible unauthorized huge landholding by individuals not registered at tax office.
The investigation is being carried out to ensure that realty developers are operating complying with the law and also to prevent undue distortion of realty market in any way, said the source. Officials at the department further informed mryepublica.com that the statistics received so far from LTOs already show that that some of the realty developers in the Valley hold a huge stretch of land in an unauthorized way, flouting the Land Reforms Act.
Going by the LRA, a person and a firm can own as much as 30 ropanis (3.77 acre) in the Kathmandu Valley, 80 ropanis (10.05 acre) in the hills and 11 bigha (17.97 acre) in Tarai districts. Industrial Enterprise Act (IEA) allows industries, including builders and housing developers, to own land beyond the set ceiling, but only on permission of the government.
"None of the land and housing developers have so far sought such permission, whereas our findings unveiled that they own as much as 105 ropanis (13.19 acre) of land in a single district of Lalitpur alone," said the source. He did not disclose the name of the builders though, but stated that for such flouting of laws, the government can go to the extent of seizing the land stretch exceeding the limit.
Referring to the three-decade old Land Tax Act, which places the responsibility of controlling the unauthorized landholding by an individual or firms to the chief of LTOs and LROs, the department has assorted that the offices have simply failed to shoulder the responsibility. It has recently issued strict instruction to the LTOs and LROs chiefs to beef up their monitoring on this front as well.
Meanwhile, land and housing developers said that the government, considering the nature of their business, has promised to raise landholding cap for them in the new legislation drafted for enactment. But the department officials said verbal assurance does not allow them to overstep the existing provisions. "If they really wanted, they could have easily got the facility under IEA," said the source.
Source: Republica
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"We have mainly intensified the investigations at LTOs and LROs in the Kathmandu Valley, Pokhara, Bhairahawa, Chitwan, Birgunj, Sunsari, Biratnagar and Jhapa, among others," said a source. The department has asked the offices to mainly dig out property holding of the registered land and housing developers and also dig out possible unauthorized huge landholding by individuals not registered at tax office.
The investigation is being carried out to ensure that realty developers are operating complying with the law and also to prevent undue distortion of realty market in any way, said the source. Officials at the department further informed mryepublica.com that the statistics received so far from LTOs already show that that some of the realty developers in the Valley hold a huge stretch of land in an unauthorized way, flouting the Land Reforms Act.
Going by the LRA, a person and a firm can own as much as 30 ropanis (3.77 acre) in the Kathmandu Valley, 80 ropanis (10.05 acre) in the hills and 11 bigha (17.97 acre) in Tarai districts. Industrial Enterprise Act (IEA) allows industries, including builders and housing developers, to own land beyond the set ceiling, but only on permission of the government.
"None of the land and housing developers have so far sought such permission, whereas our findings unveiled that they own as much as 105 ropanis (13.19 acre) of land in a single district of Lalitpur alone," said the source. He did not disclose the name of the builders though, but stated that for such flouting of laws, the government can go to the extent of seizing the land stretch exceeding the limit.
Referring to the three-decade old Land Tax Act, which places the responsibility of controlling the unauthorized landholding by an individual or firms to the chief of LTOs and LROs, the department has assorted that the offices have simply failed to shoulder the responsibility. It has recently issued strict instruction to the LTOs and LROs chiefs to beef up their monitoring on this front as well.
Meanwhile, land and housing developers said that the government, considering the nature of their business, has promised to raise landholding cap for them in the new legislation drafted for enactment. But the department officials said verbal assurance does not allow them to overstep the existing provisions. "If they really wanted, they could have easily got the facility under IEA," said the source.
Source: Republica
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PAN to be provided online
Taxpayers will now be able to receive their permanent account number (PAN) online. The Inland Revenue Department (IRD) has already started preparations to provide this facility. IRD director general Shanta Bahadur Shrestha said that the move was aimed at widening the tax net by attracting the ordinary people and professionals. "We are implementing the system so that taxpayers can get their PAN number right after their details are put on the website," he said.
The government has made a provision this year that professionals should also get PAN numbers. Currently, taxpayers have to download the form on the IRD website, fill it out and take it to the Inland Revenue Office to get their PAN card. "With the introduction of the new system, taxpayers will get their PAN number directly online, said Shrestha. "But they still have to go to the IRO to get their PAN card." "We cannot give the card directly as there is no legal provision with regard to digital signature," said Shrestha. "This system will help us in expanding our reach among the taxpayers."
The IRD expanded the online service in addition to PAN card distribution on a wider scale as per its five-year strategy. President Ram Baran Yadav had received the first personal PAN card. The IRD said about 5,000 people had already received their personal PAN cards so far. The IRD aims to expand the number of taxpayers to one million during the next five years. The IRD aims to add 200,000 taxpayers this year. There are around 350,000 taxpayers in the country currently.
The IRD has already recruited 110 tax volunteers to help in bringing more people under the tax net. Shrestha said that the IRD recruited students with a bachelor's degree or those pursuing it with tax as their major subject. The process of recruiting volunteers had been halted as people from some quarters opposed the IRD's plan last year saying that the move was non-transparent.
"We selected them as per the recommendation of the college," Shrestha said. The IRD said that these volunteers would encourage people and businessmen to come under the tax net. They will also help in enforcing the billing system at stores which would help in increasing the rental tax and value added tax.
Source:eKantipur
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The government has made a provision this year that professionals should also get PAN numbers. Currently, taxpayers have to download the form on the IRD website, fill it out and take it to the Inland Revenue Office to get their PAN card. "With the introduction of the new system, taxpayers will get their PAN number directly online, said Shrestha. "But they still have to go to the IRO to get their PAN card." "We cannot give the card directly as there is no legal provision with regard to digital signature," said Shrestha. "This system will help us in expanding our reach among the taxpayers."
The IRD expanded the online service in addition to PAN card distribution on a wider scale as per its five-year strategy. President Ram Baran Yadav had received the first personal PAN card. The IRD said about 5,000 people had already received their personal PAN cards so far. The IRD aims to expand the number of taxpayers to one million during the next five years. The IRD aims to add 200,000 taxpayers this year. There are around 350,000 taxpayers in the country currently.
The IRD has already recruited 110 tax volunteers to help in bringing more people under the tax net. Shrestha said that the IRD recruited students with a bachelor's degree or those pursuing it with tax as their major subject. The process of recruiting volunteers had been halted as people from some quarters opposed the IRD's plan last year saying that the move was non-transparent.
"We selected them as per the recommendation of the college," Shrestha said. The IRD said that these volunteers would encourage people and businessmen to come under the tax net. They will also help in enforcing the billing system at stores which would help in increasing the rental tax and value added tax.
Source:eKantipur
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