February 12: Consumers have started receiving 10 percent cash-back on Value Added Tax (VAT) while making purchase of goods through electronic means. Finance Minister Yuba Raj Khatiwada had announced the VAT rebate while making the budget announcement for the current fiscal year. This facility was officially launched by the minister amid a function on Tuesday (February 11) to encourage cash-less payment.
Customers using making electronic transaction through debit/credit cards, Fonepay, e-Sewa, Khalti, CellPay, Connect IPS can avail the 10 percent VAT rebate, informed Binod Bahadur Kunwar, director general of the Inland Revenue Department.
According to him, the customers will get cash back for making purchase between Rs 1,000 to Rs 100,000. He further said that the amount will be returned back to the consumer’s account immediately if the payment is made electronically.
The department on Tuesday organized a program to register the biometric information of taxpayers.
The move is expected to encouraging people's participation in taxation and increase the ambit of tax.
Stakeholders believe that the use of digital medium for payment will eventually curb the revenue leakage and bring down any unauthorized financial transactions.
Consumers will get the VAT rebate whenever they use an electronic medium for payment at outlets which use the system approved by the Nepal Rastra Bank.