New Budget provides relief to Tootle and Pathao | No more tax obligation

The Ride Sharing Company, ‘Tootle’ and ‘Pathao’ who has been involved in the tax dispute, will receive the payment of tax, penalty, additional money, fees, and interest. After these decisions have been determined on tax above the capacity of the two companies, the Finance Minister Dr. Yuvraj Khatiwada has announced to give them the payment of all due to the tax by 2075/76 before the fiscal year through the budget.

According to an official of the internal revenues department, these companies should be required to get the tax exemption from the financial year 2075/76 and increase the value within the next fiscal year.

 

The ticket was written by Inland Revenue Department, Lalitpur while writing the company for admission.

 

The department had found that the company had not paid a tax of around Rs. 3 Crores. It has been added to the growth rate of 3-year duration (VAT), income tax, penalty, and interest.

 

The Inland Revenue Department, Lalitpur had long tested the Tootle business. And in the discussion with the company, Tootle informed that they didn’t initially know the information on how to raise the VAT and to pay taxes.

 

In the year of service startup, the company added the amount associated with the VAT and charged the customer. However, the number of rupees raised was not extinguished. Last year, they left tax on the title of VAT.

 

Tootle was also found not clearing their income tax. Due to this obligation in the business, they have to face a penalty of tax along with interest added.

Similarly, the other Ride Sharing company, ‘Pathao’ is also under the similar obligation of tax issues and there is an investigation on the send-up.

‘Tootle’ and ‘Pathao’ are two very popular riding apps in Nepal which allow the passenger to take a ride from one place to another through motorcycles just as ‘Taxi’.

Shortly ago, the government was about to close this service saying private vehicles would not be able to carry passengers. But after intense criticism in the social network, in the direction of Prime Minister, KP Sharma Oli, Metropolitan Traffic Police left behind the issue.

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Also Read: Highlights on Nepal's Budget 2076/77