The office has deployed two teams to take stock of transactions and VAT collection in tourist standard hotels based in Lake Side.[break]
A recently conducted preliminary investigation of the IRO had revealed that tourist standard hotels in Pokhara have not paid VAT worth hundreds of millions rupees to the government.
Chief of IRO Pokhara Laxman Bahadur Basnet said both the teams were minutely studying the billing and computer-based account keeping system, situation of turnover and details of proprietors of the hotels under scrutiny. He said the office would take appropriate action by coordinating with the Paschimanchal Hotel Association Pokhara if the hotels were found to have evaded tax.
The association has assured full support to revenue officials in the investigation and realization of revenue from the evaders.
According to an executive member of the association, 26 hotels might face action for evading hundreds of thousands of rupees in revenue annually.
Around 500 big and small hotels are operating in Pokhara - the second largest tourist destination in the country.
“Most of the hotels were found not depositing VAT collected from their guests in the government´s account. We have initiated the process to freeze property of those found involved in VAT evasion,” said Basnet.
The government recently brought paragliding operators into VAT net. A total of 17 paragliding companies operating in the lake city have registered under VAT.
Related story
Govt collects Rs 62.97 billion in revenue in the 1st month of F...
