Chitwan businesses protest DRI action

THE Department of Revenue Investigation (DRI) has directed Laxmi Narayan Bastralaya to pay Rs 45.8 million within the next 15 days in a VAT evasion case. However, there is no sign that Laxmi Narayan Bastralaya, one of the famous clothing stores of Nagayangadh, will pay the taxes. The DRI’s decision has business communities condemning the penalty, with the Chitwan Chamber of Commerce (CCC) protesting the DRI’s action. Laxmi Narayan Shrestha, owner of Laxmi Narayan Bastralaya, has been charged with evading taxes. Businessmen said the department reached the decision based on loan documents. “The government has to impose tax on the transaction amount, as per law,” said Kalyan Joshi, senior vice-president of CCC. Narayangadh’s shops have protested the DRI’s move by hanging a black banner in the shops. Businessmen have requested the Finance Minister, through the Chief District Officer, to review the case. Joshi said that they were also preparing to meet the Chairman of Interim government, Khil Raj Regmi, through the Federation of Nepalese Chambers of Commerce and Industry, regarding the issue. Last year, the DRI raided Laxmi Narayan Bastralaya, suspecting tax evasion. At that time, local businessmen set ablaze a government vehicle, vandalised police property and acted imposingly towards government officials in protest of the raid. The DRI has said if the businesses have any reservations, they can seek legal remedies. “We had raided the shop for the issue of VAT evasion,” said Khum Raj Punjali, director general of the DRI. Laxmi Narayan Bastralaya can now approach the Inland Revenue Department for administrative review and also file an appeal in the Revenue Tribunal. Normally, once an appeal is filed at the tribunal, the applicant receives 30 days to prepare. Shrestha of Laxmi Narayan Bastralaya owes Rs 120 million to the government in revenues such as income tax and penalties. However, Shrestha said that he was not in a financial condition to clear the dues to the government. The shop has been operational for the last 36 years.