Exclusion of Non-profit Motive Organization from VAT Pleads Civil Society
In a program organized by Informal Sector Service Center on 3 December in Kathmandu regarding the obtaining and renewal of tax clearance certificate the leaders of various social organization put forth a view of not including socially working organization under the rule of VAT.
The members of civil society has shown his dissatisfaction in the various amendments made by the government for including organization in the tax boundary is making the work more perplexed.
Informal sector Service Center (INSEC) chairperson Dr. Indira Shrestha said that the social organization move forward with the help of donors and the donation money should not be considered as profit of the organization. She said that the social organizations are contributing to achieve the goals of the government and the government should not consider the organization as their competitors.
According to the chairperson of the GOGO foundation the rules made by the government itself are very complicated.
He further adds that the taxation rules should be same everywhere but they tend to differ, district tax office and officer wise which is creating a problem to work in social fields.
In the program Tara Bhandari said the language used in tax office is also raising problems. “Three different price on three different government levels in name of registration of organization and VAT has been raising the additional cost.” says a speaker in the program.
The problem is rising as it is not easy to get a tax clearance certificate of the social organization from the government.
Head of Internal Revenue Department Mr. Tara Prasad Sharma said as the ministry of finance makes various changes in the amendment every year it could do some positive changes this year too. The amendment are brought in action June but the revisions should start from August.
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