KATHMANDU, Sept 10
The Ministry of Commerce and Supplies has initiated the process of reopening the duty-free liquor shops that were shut down six years ago for extreme tax evasion following pressure of different power centers. It has even sent a proposal to the Finance Ministry.
The government had shut these duty-free shops, even though it is an international practice to keep such shops at international airports, as the liquors meant for the shops were sold even at the market in lack of proper regulation. Revenue from imported goods had doubled after the duty-free shops at the airport were shut down. The Ministry of Commerce and Supplies has reportedly given permission to the government-owned National Trading Corporation to keep duty-free shops at the airport while the latter is preparing to hand over the responsibility to private companies under pressure of different power centers. “National Trading had sent a proposal to the ministry a few days ago. We have sent it to the Finance Ministry for approval,” Spokesperson at the ministry Dipak Subedi says.
National Trading currently has been given permission to sell liquors to the diplomatic missions only from its center in front of the Singha Durbar. Subedi states that the ministry has recommended for permission as National Trading has accepted its inability to properly operate the duty-free shops in the past and proposed to operate them in a new way. The Finance Ministry, however, has been rejecting such proposals despite the recommendation by the Ministry of Commerce and Supplies stating that duty-free facilities can be misused as in the past. Sources at the Finance Ministry claim that officials from National Trading, the Ministry of Commerce and Supplies and airport office have been making rounds of the ministry daily to get permission.
National Trading and Universal Trading had been allowed to keep stalls inside Kathmandu Valley to sell liquors only on the basis of diplomatic identity cards and recommendations while Greenline International was given permission to operate a duty-paid liquor store inside the airport. Revenue from import of liquors had doubled after duty-free shops at the airport were shut down. Excise duty from imported liquors alone had increased by 90 percent the year after the duty-free shops were closed, according to government data. Annual growth rate after that has remained 26-67 percent.
Sources at the Ministry of Commerce and Supplies claim that top political leadership of ruling parties is also putting pressure on resumption of duty-free shops. They say the government is preparing to provide permission to the private sector through National Trading as giving permission to the private sector directly will invite criticism. “We have recommended the Finance Ministry for permission as the proposal of National Trading is attractive. But we doubt whether National Trading itself has drafted this proposal,” an officer at the Ministry of Commerce and Supplies says requesting anonymity. The officer argues that the very fact that National Trading has submitted the proposal in a way to give management responsibility to the private sector shows there is scope of maneuvering. The Finance Ministry, however, has yet to send a green signal even though the Ministry of Commerce and Supplies had sent the proposal for approval a month ago.
The country had collected revenues of Rs 100 million from import of liquors in the fiscal year 2064/65. It doubled the next year after the duty-free shops were shut down. The government collected Rs 1.70 billion from imported liquors alone in the fiscal year 2070/71. Officials at the Finance Ministry fear that the revenue will again fall if the duty-free shops were to be reopened. They have concluded that resuming duty-free shops, that have failed in the past, will promote irregularities. The ministry is concerned that allowing National Trading to operate duty-free shops will cost the country hundreds of millions at a time when the country is already losing tens of millions due to liquors bought by passengers from duty-free shops at airports abroad.
The Ministry of Commerce and Supplies has initiated the process of reopening the duty-free liquor shops that were shut down six years ago for extreme tax evasion following pressure of different power centers. It has even sent a proposal to the Finance Ministry.
The government had shut these duty-free shops, even though it is an international practice to keep such shops at international airports, as the liquors meant for the shops were sold even at the market in lack of proper regulation. Revenue from imported goods had doubled after the duty-free shops at the airport were shut down. The Ministry of Commerce and Supplies has reportedly given permission to the government-owned National Trading Corporation to keep duty-free shops at the airport while the latter is preparing to hand over the responsibility to private companies under pressure of different power centers. “National Trading had sent a proposal to the ministry a few days ago. We have sent it to the Finance Ministry for approval,” Spokesperson at the ministry Dipak Subedi says.
National Trading currently has been given permission to sell liquors to the diplomatic missions only from its center in front of the Singha Durbar. Subedi states that the ministry has recommended for permission as National Trading has accepted its inability to properly operate the duty-free shops in the past and proposed to operate them in a new way. The Finance Ministry, however, has been rejecting such proposals despite the recommendation by the Ministry of Commerce and Supplies stating that duty-free facilities can be misused as in the past. Sources at the Finance Ministry claim that officials from National Trading, the Ministry of Commerce and Supplies and airport office have been making rounds of the ministry daily to get permission.
National Trading and Universal Trading had been allowed to keep stalls inside Kathmandu Valley to sell liquors only on the basis of diplomatic identity cards and recommendations while Greenline International was given permission to operate a duty-paid liquor store inside the airport. Revenue from import of liquors had doubled after duty-free shops at the airport were shut down. Excise duty from imported liquors alone had increased by 90 percent the year after the duty-free shops were closed, according to government data. Annual growth rate after that has remained 26-67 percent.
Sources at the Ministry of Commerce and Supplies claim that top political leadership of ruling parties is also putting pressure on resumption of duty-free shops. They say the government is preparing to provide permission to the private sector through National Trading as giving permission to the private sector directly will invite criticism. “We have recommended the Finance Ministry for permission as the proposal of National Trading is attractive. But we doubt whether National Trading itself has drafted this proposal,” an officer at the Ministry of Commerce and Supplies says requesting anonymity. The officer argues that the very fact that National Trading has submitted the proposal in a way to give management responsibility to the private sector shows there is scope of maneuvering. The Finance Ministry, however, has yet to send a green signal even though the Ministry of Commerce and Supplies had sent the proposal for approval a month ago.
The country had collected revenues of Rs 100 million from import of liquors in the fiscal year 2064/65. It doubled the next year after the duty-free shops were shut down. The government collected Rs 1.70 billion from imported liquors alone in the fiscal year 2070/71. Officials at the Finance Ministry fear that the revenue will again fall if the duty-free shops were to be reopened. They have concluded that resuming duty-free shops, that have failed in the past, will promote irregularities. The ministry is concerned that allowing National Trading to operate duty-free shops will cost the country hundreds of millions at a time when the country is already losing tens of millions due to liquors bought by passengers from duty-free shops at airports abroad.
No comments:
Post a Comment