NC CENTRALWORKING COMMITTEE MEET CONTINUES FRIDAY Kathmandu, 17 Aug.: Main opposition NC central committee continues its meeting for the second day continuous day Friday. The committee Friday is discussing formation of 12 more departments in addition to the 42 already formed by the establishment. The body meets amid deep differences between President Sushill Koirala and Sher Bahadur Deuba camps. The policy making body is discussing dates for general conventions of partysister organizations. nnnn CHITWAN CLOSED DOWN BY OPPOSITION STUDENTS, YOUTH Kathmandu, 17 Aug.: Central Chitwan district was closed down Friday by NC and UML youth and students protesting Thursday’s police assault on them while greeting Prime Minister Baburam Bhattarai with black flags at Bharatpur airport. Five demonstrators were injured. The premier was returning to the capital after spending a night with Chepamgs in the district. Nnnn MORE BROUGHT INTO TAX NET Kathmandu, 17 Aug.: The number of large taxpayers has increased by a whopping 40 percent over the last one year despite slowing economic activities in the country as the government stepped up revenue investigations discouraging manipulation of transactions by business firms through fake VAT billing, Prabhakar Ghimere writes in Republic. . During the fiscal year 2011/12, the government stepped up investigations into fake VAT billing rackets including 518 business organizations that were found to have evaded more than four billion rupees. Large Tax Payers´ Office (LTO) stated that the number of large taxpayers increased to 722 by the end of the fiscal year 2011/12, up from 522 a year earlier. Of the total large taxpayers, 94 are from banking, 124 from non-agriculture, 29 from multinational companies, 106 from Public Enterprises (PEs), 262 from trading and 107 from agriculture sectors. A senior office bearer of the Federation of Nepalese Chambers of Commerce and Industry said the number of large taxpayers has shot up significantly, especially those from trading business firms, as the government stepped up investigations on tax evasion following the revelation of 518 cases of fake VAT last year. According to Madhu Kumar Marasini, deputy director general of Inland Revenue Department (IRD), 495 new cases of revenue evasion through fake VAT billing are under investigation besides 518 old cases. “More and more firms are showing genuine VAT bills to maintain transparency in their business. It is a positive impact of ongoing investigation into fake VAT billing practices,” he said. He also said strengthening US dollar vis-à-vis Nepali rupees as well as increasing volume of imports also pushed up the turnover of business firms over the period. “The number of large taxpayers has shot up significantly along with their increasing contribution to total tax revenue,” said Ananda Dhakal, chief of LTO, at an interaction with large taxpayers on Thursday. Out of the total tax revenue, contribution of large taxpayers increased to 52 percent during the fiscal year 2011/12 compared to 49 percent recorded the previous year. The government collected Rs 49.40 billion from large taxpayers during the year, up by 23 percent recorded earlier year. Out of the total revenue collected from large taxpayers, 5 percent was contributed by agro-based, 47 percent by multinationals, 28.8 percent by banks and financial institutions, 4.1 percent by non-agriculture sector, 6.7 percent by trading and 7.2 percent by PEs. Dhakal said a total Rs 19.61 billion was collected from the top ten tax payers, Rs 61.84 billion from top hundred taxpayers during the fiscal year 2011/12. Business enterprises having an annual turnover of over Rs 250 million are designated as large tax payers. Tax officials said business firms involved in the trading of basic essential commodities such as foods, clothing, petroleum products as well as dealers of construction materials, electronic goods are emerging as large taxpayers. Nnnn ________________________________________ NIGHT BUS SERVICE BEGINS IN CAPITAL FROM FRIDAY Kathmandu, Aug 17: It´s official! Kathmandu Metropolitan City (KMC) is launching night bus service in the city from Friday. KMC in coordination with the Federation of Nepalese Transport Entrepreneurs (FNTE) and Metropolitan Police Commissioner´s Office (MPCO) will operate 14 night buses in six different routes of Kathmandu and Lalitpur, Nirnjan Sharma writes in Republica.. KMC chief Kedar Bahadur Adhikari informed that each bus will be equipped with two armed security personnel and a CCTV. “Though the service will only be run for six months in the initial phase, we will continue it if it proves useful for people compelled to travel during late hours either due to job or emergency situation,” said Adhikari. While four vehicles will ply along the Ring Road, 10 others will operate along five different routes - Satdobato-Ratnapark, Koteshwar-Sinamangal-New Bus Park, Jorpati-Ratnapark, Kalanki-Ratnapark and Balaju-Ratnapark. The night bus service will be available from 8- 11 pm. The 26-seater buses are distinguished by digital lights and uniformed staff. Superintendent of Police (SP) at MPCO Bikash Shrestha said that further information about the night bus service can be availed by calling toll free number 100. He also urged the night time commuters to trust MPCO for security as police personnel will be deployed at every bus stop and along the routes. Likewise, MPCO is prepared to escort the vehicles in case of unpleasant eventuality. As per an agreement between the local body and FNTE, KMC will provide Rs 4.5 million in assistance to FNTE for fuel expenses and staff salary, said FNTE. “We have already received Rs 2 million from KMC. We will also get the remaining Rs 2.5 million within a couple of months,” said Saroj Sitaula, treasurer of FNTE. The service also aims to create environment for nightlife in the capital, said Sitaula. Routes of night bus service Kalanki -New Bus Park- Chabahil- Koteshwar-Satdobato- Kalanki Bir Hospital- Bus Park-Bhrikuti Mandap- Krishna Pauroti- Gyaneshwar- Maitidevi- Old Baneshwar -Gaushala- Chabahil- Jorpati Ratnapark- Sahid Gate-Tripureshwar- Kalimati-Kalanki Ratnapark-Jamal-Lazimpat-Maharajgunj -Ganga Lal Heart Disease Centre Ratnapark-Singhadurbar-Babarmahal-Tinkune-Sinamangal-Koteshwar Ratnapark- Singhadurbar- Thapathali- Jawalakhel- Patan- Satdobato Nnnn • PRESIDENT FEELS ORDINANCE NOT RIGHT WAY Kathmandu, 17Aug.: At a time when the government is planning to bring an ordinance to pave the way for appointment of Supreme Court justices, ambassadors and chiefs of various constitutional bodies, President Dr Ram Baran Yadav is learnt to have reservations about the path chosen by the government, Ananta Raj Luitel writes in The Himalayan Times. . As the constitution clearly states that parliamentary hearings are to be conducted while making appointments to the posts in question, the President is feeling uneasy about giving a nod an ordinance that would alter legal provisions to make them contradict with the constitution. “This might create a serious constitutional question,” the source added. The President will examine whether the government’s proposal has a minimum constitutional and legal legitimacy, according to the source. “The President may ask Prime Minister Baburam Bhattarai to seek other alternatives than to bring an ordinance,” he added. This comes as the judiciary has suggested three options for the government to fill the vacant posts in the absence of a Parliament. One option the Supreme Court leadership has floated is that the government invoke presidential powers to remove constitutional hurdles to make the appointments. The other option, suggested by the judiciary, is to wait for a decision on a sub-judice court case that may end up in a verdict allowing the government to fill the vacancies without a hearing. The final option the government was given was to bring an ordinance. However, there are various drawbacks to this. The ordinance, which the government has proposed, seeks to amend Section 7 of the Act Relating to Constitutional Council, which makes it mandatory that a parliamentary hearing is carried out while making appointments to key positions. The proposed ordinance also seeks to amend the Judicial Council Act 1990 to clear the decks for the appointment of judges in the Supreme Court. But the ordinance will have no effect on Article 155 of the Constitution, which clearly states parliamentary hearing is required prior to the appointment of judges and chiefs of constitutional bodies. Legal Adviser to the President Surya Dhungel expressed hope that the government will seek a legitimate solution to the crisis. “As a student of Law, I hope that the government will initiate a process as per the Constitution,” Dhungel remarked. “This issue is related with the implementation of the Constitutional provision so political consensus is required to seek a solution,” he added. Nnnn • PAN MUST FOR LOANS OVER RS. 10 MILLION Kathmandu, 17 Aug.: Nepal Rastra Bank (NRB) has made it mandatory for borrowers borrowing more than Rs 10 million from financial institutions to have Permanent Account Number (PAN), The Himalayan Times reports. The central bank has made the provision mandatory in order to keep the large borrowers under the tax administration’s scanner. “Though there are some 700,000 people who have borrowed from banks for commercial purposes, only 500,000 are registered with PAN, according to Inland Revenue Department data,” said the department’s deputy director general Madhu Kumar Marasini. The central bank has also brought a bunch of regulations in line with the year’s monetary policy. According to the circular, the new cash reserve ratio rule will be implemented from August 19. This year’s monetary policy had hiked up cash reserve ratio to six per cent for commercial banks, 5.5 per cent for development banks and five per cent for finance companies due to ample liquidity in the market. Even microfinance institutions have to maintain a cash reserve of two per cent of their total deposits. Central bank has also fixed eight per cent bank rate that will be applicable for loans under lender to last resort facility and standing liquidity facility along with the discount rate of government securities, in the circular as announced in the monetary policy. As for deprived sector lending, financial institutions can increase 0.25 percentage point by mid-January 2013 and another 0.25 per cent point by the end of the current fiscal year. The monetary policy has increased deprived sector lending by banks to four per cent of total lending, 3.5 per cent for development banks and three per cent for finance companies –– a 0.5 percentage point increment from last year. Likewise, NRB has increased the limit on microfinance loans to Rs 300,000 against acceptable collateral, provided the borrower belongs to a microfinance group, while a microfinance borrower without a microfinance group can obtain loans of up to Rs 60,000 only. NRB has extended the scope of agriculture loans to agro tools, fertilisers, seeds and saplings, storage and also processing of tea, coffee, ginger and fruits. Moreover, it has asked commercial banks to assess potential risks apart from identified ones based on Internal Capital Adequacy Assessment Process (ICAAP) Guidelines and prepare ICAAP Policy before mid-January 2013. nnnn