31st May 2019, Kathmandu
In the budget unveiling ceremony, the Finance Minister, Yuvraj Khatiwada, mentioned that ride-sharing companies like Tootle and Pathao that were facing troubles due to unmatched laws would receive direct tax levitation and other startups will also get certain benefits if they abide by the tax rates mentioned in the 2075/76 B.S. Budget declaration.
Those companies that hadn’t been paying proper taxes before this fiscal year will now need to abide by the rules of 2075/76 B.S. will get an exemption from taxes and fines. Dr. Khatiwada mentioned that the companies that aren’t already paying taxes need to follow the rules and pay according to the increased rates within 2076 B.S. Poush so that the fines and taxes to be paid before that including additional fees will be exempted.
Lalitpur Metropolitan city recently pointed out 3 Crore 31 Lakh Rupees as the tax to be paid by Tootle claiming that Tootle hasn’t paid the nation’s taxes although it provides the customers with VAT included fairs. With suspicions that Pathao has also been neglecting the taxes, the revenue department investigated the case and pointed out 30 Lakh tax remaining to be paid by Pathao.
Both Tootle and Pathao have been under the radar of the government after the controversial incident that took place months ago. These IT companies have been providing ride sharing feature, which itself isn’t a transportation facility but a medium for people to easily share rides. The government didn’t agree to these policies of the companies and stated that the IT companies were going against the Law presented by the nation, which itself is true, but the laws needed to change so that the people getting benefited by such amazing ideas weren’t discouraged. This recent addition of Tax Exemption facility to such startups is a positive sign for technological growth in Nepal.