Meeting with Inland Revenue Department

15 March 2022. A team of NGO Federation of Nepal (NFN) led by NFN's President Mr. Ram Prasad Subedi held a meeting with the Director General of Inland Revenue Department Mr Ritesh Kumar Shakya and his team on 15 March 2022. The delegation team handed over a letter with details of the tax issues faced by NGOs and the demands in order to resolve the issues. It was highlighted that current obstacles faced by NGOs/CSOs are against the fundamental rights and freedoms and democracy and would shrink civic space. The tax issues are also exacerbated by the operational weaknesses of the tax offices, NGOs’ weaknesses in the presentation of profit and loss, and the approach of IRD to recognize the economic activities and transactions rather than the NGOs as a sector. It has been agreed that the IRD would take initiative for clear and practical tax provisions to NGOs. IRD will maintain uniform standard and approach to NGOs’ tax provisions across all tax offices. Likewise, tax education and awareness programs will be organized jointly by NFN and IRD. Also, the Director General has committed to seriously consider the demands submitted by NFN. While the government is already in the budget consultation process, Director General Mr. Shrestha suggested of policy feedback and advocacy in order to get the tax issues addressed. Further, consultations will be done with the Economic Policy Analysis Division under the Ministry of Finance. NFN's team included Secretary General Mr Arjun Bhattarai, Deputy Secretary General Mr Rajendra Sharma, and Chartered Accountant Mr. Nirmal Bartaula.