FinMin extends PAN and VCTS provisions

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Kathmandu, July 23

Minister of Finance Yubaraj Khatiwada has said that the permanent account number (PAN) and vehicle and consignment tracking system (VCTS) provisions have been extended for three months.

Responding to the request of Federation of Nepal Cottage and Small Industries (FNCSI) today, Minister Khatiwada said the government has decided to extend the deadline for implementation of PAN provision.

“We are currently at the phase of testing and promoting this provision, so the time period for obtaining PAN and implementing VCTS can be extended,” he said. “Both the provisions were implemented simultaneously, so this difficulty has cropped up. Hence, we have decided to extend the deadline for implementation of both these provisions by another three months,” the minister said. “Till then, employees can receive their salaries through the old provision.”

Earlier, FNCSI had forwarded a letter to the finance minister informing that implementation of PAN and VCTS provisions by mid-July was not possible and had requested the minister to extend the deadline.

Meanwhile, Minister Khatiwada has also said that the ministry will form a taskforce to implement PAN and VCTS for their effective implementation. Issuing a statement today, FNCSI has said that it is difficult for small and cottage industries to immediately execute the PAN system for salary distribution.

“It would be better for the PAN provision to be implemented for medium- and large-scale industries. And after its effective implementation in such industries, the provision should be implemented for small and cottage industries. Workers of small and cottage industries might need at least six months to be listed at PAN,” the FNCSI said in a statement.

Based on the new Finance Bill, the government had implemented PAN and VCTS provisions from July 16. In order to curb revenue leakages, the government had made PAN mandatory for salary earners. By making PAN mandatory, the government will be able to track the actual amount of tax that an individual has been paying out of his or her earning.

The post FinMin extends PAN and VCTS provisions appeared first on The Himalayan Times.

Written by Sandeep Sen
This news first appeared on https://thehimalayantimes.com/business/finmin-extends-pan-and-vcts-provisions/ under the title “FinMin extends PAN and VCTS provisions”. Bolchha Nepal is not responsible or affiliated towards the opinion expressed in this news article.