Govt. sends letters to potential taxpayers

In a bid to boost revenue collection, the government has begun to send confidential letters to potential taxpayers across the country.

The government has been requesting potential taxpayers to declare their incomes and properties and to pay taxes under the Voluntary Disclosure of Income Scheme (VDIS) announced in the current budget.

According to the Kathmandu Post daily, 300 such letters have been sent to traders and other individuals holding various occupations.

"We have begun sending letters to potential taxpayers from the Inland Revenue Office, Dharan," Krishna Hari Baskota, revenue secretary at the Ministry of Finance, was quoted as saying.

According to the daily, the government is also preparing individual details of taxpayers who fall under the scheme.

The government has set the second week of February 2009 as the deadline for taxpayers to pay taxes under VDIS scheme. It has also assured the taxpayers that it will not seek their income sources and will give legal recognition to their property.

The government had introduced VDIS in fiscal year 2002/03 with the goal of raising Rs. 1 billion and it was able to collect about Rs. 620 million.

The daily quoted Baskota as saying that the government has been meeting revenue collection targets so far and is confident of achieving over Rs. 141 billion, which is current fiscal year's goal.

According to Baskota, 250 personnel of the armed police will soon be deployed along the border. Volunteers will also be mobilized to encourage VAT billing and proper billing besides putting in place other revenue boosting measures.