Implement tax system

The Himalayan Times

28 June 2018

Implement tax system

The government of Nepal had, in the past for several years, and has engaged many working partners shouldering the responsibilities of implementing various development activities for the well-being of its people, especially, residing in the remote rural areas. These working partners were or are local youth clubs, user’s groups, non-governmental organizations (NGOs), international non-governmental organizations (INGOs), bilateral and multi-lateral donor organizations. All these partner organizations were or have been implementing their development activities in different parts of the country in their own ways based on the nature of programmes and objectives.

However, the government did not seem to have its own proper basis or criteria to engage these partners which resulted in the haphazard implementation of development activities. Also, in the absence of proper supervision and monitoring mechanism with the government and its concerned authorities, the achievement of intended objectives of all these partners especially that of I/NGOs could not be scientifically measured. However, the roles and contributions of some of these organizations in empowering the local population and carrying out development activities beneficial to their target groups cannot be and should not be undermined. The government should have identified and encouraged these successful organizations to move into other needy areas which unfortunately did not happen.

Now, the questions have raised which I/NGOs should be given Tax Exemption Certificate (TEC) and which should not be “Taxation in INGOs” (THT, June 26, Page 6). Some of them are paying taxes and some are not. This again indicates that the government and its concerned authorities either do not have proper taxation system regarding I/NGOs or are not serious enough to appropriately implement the existing taxation system. In fact, all the I/NGOs should not be profit making organizations based on the nature of their funding.

Rai Biren Bangdel

Maharajgunj

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