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Govt seeks sweeping action to plug revenue leakage

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KATHMANDU, Sept 15: The government on Thursday instructed Department of Revenue Investigation (DRI) to intensify raids at warehouses hoarding smuggled goods and also take actions to control revenue leakage.



Central Revenue Leakage Control Committee has asked the DRI to bolster its informers´ network and launch sweeping actions, anticipating a rise in smuggling as traders are importing goods in massive quantities considering the rise in consumption during festive seasons.[break]



The committee led by finance minister also instructed all revenue authority and security agencies to work in close coordination for effective outcome.



As the sales in the market would jump sharply during Dashain and Tihar festivals, the committee also instructed Inland Revenue Department (IRD) to launch consumer awareness campaign and other activities to enforce issuance of sales receipt in order to plug evasion of value added tax (VAT).



“IRD has been instructed to launch such campaigns and actions mainly at departmental stores, malls and large sales outlet,” said a Ministry of Finance official, who attended the meeting.



The committee also instructed the DRI to conduct sudden inspection of the large retail outlets to check if they are issuing VAT bills, which is mandatory as per the law.



Likewise, the committee has also asked district-level revenue leakage control committees to remain alert in 17 districts sharing border with India and three districts sharing border with China to check revenue leakage.



“These district-level committees have been asked to hold meetings every fortnight and review the progress, weaknesses and ways to bolster steps aimed at curbing revenue leakage,” said the source.



The committee also decided to mobilize chief district officers and police personnel more effectively. It also asked concerned DRI, IRD and Customs Department to take stringent actions against staff, if they are found facilitating revenue evasion.



The committee also instructed Customs Department to take immediate steps to control anomalies in Tribhuvan International Airport (TIA) customs. “For this, the department has been asked to hold meetings with all concerned agencies immediately and take corrective actions,” the source added.



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