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Government Widens Tax Net

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Government Widens Tax Net
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June 4: The government has widened the tax net for the upcoming fiscal year.

This is clearly evident from the government’s attempt to increase revenue collection in FY 2019/20 by introducing new laws after amending the Financial Bill 2076.

The government, which has announced a budget of Rs 1532 billion for the upcoming fiscal year, aims to foot the bills by collecting Rs 981 billion in revenue.

By amending the Value Added Tax Act 2052, the government has made it mandatory for businesses of alcohol, health clubs, discotheques, massage centers, motor spare parts as well as customs agents and electronic software developers to get registered under VAT.  

Likewise, the government has also brought educational and legal consultancies as well as auditing firms under the purview of VAT.

The new laws have made it compulsory for all such businesses registered as per the Financial Act to fill their details in the biometric system.

The amended bill also has provision to pay tax more than Rs 1 million through cheque, draft or electronic medium.

Likewise, the government has decided to bring all the cooperatives under the ambit of tax.

 

 

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