Government directs taxpayer to pay income tax by mid-January

KATHMANDU: The government has directed the taxpayers to pay income tax on time despite request from the private sector to extend the income tax payment period by at least three months.

Different business firms and associations had been demanding extension of the income tax filing deadline, stating trade and businesses had been adversely affected by the COVID-19 pandemic.

However, the government has directed taxpayers to pay the income tax installment by mid-January.

According to the Income Tax Act, the Inland Revenue Department has informed that the taxpayers who have to pay the income tax installment amount for the fiscal year 2020/21 have to pay 40 percent of the first installment tax by mid-January.

It has been directed to taxpayer to reach the big tax payer’s office, middle level tax payer’s office or the concerned Inland Revenue Office and pay the tax by mid-January. The department has also stated that if the tax is not paid within the stipulated time, fines, fees and interest will be levied as per the law.

According to the Ministry of Finance, the revenue is rising close to the target in the current fiscal year. The customs revenue is close to the target as there is no big difference in imports this year.

As of Monday, the government has collected Rs 376.2 billion in revenue. The target for total revenue collection this year is Rs 1,011.75 billion. A large amount of money comes to the government’s revenue account in mid-January, the last day to pay the first installment of income tax.