Tax system in Nepal highly questionable

Mangshir 1 has been declared as a national Tax day in Nepal. From early morning people dressed up in black suits were seen shouting “pay your tax”. It looked as if the government was desperately trying to show its presence in the streets in regards to the normal practice of so call “CREDIBILITY”.

With rigid and tight policies, the government is very contradictory in its operations of regulating tax issue to the Public. Despite the difference in between the normal public and the business sector the police are more lenient and facilitating towards for the big players.

For instance, if you go to open a formal company or organization in Nepal, it’s just the lawyer charge and a minimum revenue tax of Nrs 2000 depending upon the type and capital of your organization. But when you try to close the same organization, then there are so many complications that you cannot even imagine. It’s like a nightmare that keeps you haunting like hell and you don’t even want to imagine.

A year back I had registered a company/ organization with the PVT Ltd, I had the will and zeal to do something and was very inspired.

Being taxation and a commerce student, I also had some insights on company details but after a year when I initiated the closure process I was shocked to know it demanded a huge amount of money that started from Nrs 15,000 plus.

Its pretty shocking how our government works may be to some extent, we all can understand the need and pressure to make the polices tight but regardless of that the complication in closure pressure is hugely contradictory in every possible means. The government’s roles and objective seems pretty narrowed down to the extent of just collecting the tax money. In-fact a possible role of the government should be towards making the public or citizens responsible towards the system in every aspect of making the tax system vigilant, transparent and easy where the role of the government is just limited towards revenue generation only.

I believe simplification in the taxation procedure is a need. We the citizens of Nepal pay taxes in everything thing from the garbage and sewage we discard to the water we drink and still the government has such rigid policies that diverts us from not being liable to the tax system. It is not about the punishment or paying it’s about being RESPONSIBLE and how you make yourself visible in the society, where it lacks its efforts.

Whether you talk about VAT or Service charge, the normal public has to suffer regardless of any type of services and facilities available. Why should I be liable to the tax system that is very rigid to the public? Why can’t the policy makers understand that tax payers are the most important part of the economy and when they are limited within the polices of the paying tax the credibility fades  

    

Why should I pay the tax if I don’t feel secure while walking in the road?
Why should I pay the tax when the road of the PM office is top notch and the road in front of my house is bad?
Why should I pay tax when I being a citizen have to stand in line and any other man with power could easily bypass  me using his power?  

Civilian supremacy is the need and right of every citizen in any democratic practice where a citizen should feel responsible not liable but with rigid policies and monopoly for a definite sector and people, Nepal’s tax policies make  us feel liable and we fail to realize this as our responsibility……………………..