Nepal government, in order to ease tax collection process and cut back on costs incurred– has decided to implement digital payment systems to collect tax revenue.
According to Joint Secretary at Finance Ministry, Shova Kanta Poudel, steps are being taken to fully implement the system in Inland Revenue Department.
The system after coming into operation is said to collect Value Added Tax (VAT), income tax, excise duty and other major taxes through digital gateways.
Nepal Rastra Bank is currently working on required steps to be taken to implement unified payment system including, mobile payment, real-time payment, digital payment and next-generation payment.
The system is believed to ensure timely collection of revenue in National Treasury and reduce the knowledge divide between tax-officers and taxpayers.
In its first phase, the system will be implemented in 49 regional offices of IRD, 22 customs offices, 26 Taxpayer Service Offices (13 inside Kathmandu Valley and 13 Outside the Valley) and other major taxpayer offices.
This article was originally published in The Himalayan Times on 27 December 2017.