Wednesday, January 6, 2010

Tax holiday over for former king Gyanendra

KATHMANDU, JAN 05 - The government has rejected former king Gyanendra Shah’s plea for tax waiver on his personal and family property, including utility bills. A meeting of the Cabinet committee on bills on Tuesday decided to ask the former king to clear all outstanding dues since being deposed after the Constituent Assembly election in 2008. As per the latest decision, he will also have to pay electricity, telephone and water bills.

“Now he is a common citizen and will have to pay all taxes as other citizens,” said Minister for Law and Justice Prem Bahadur Singh. The former king had written to the Finance Ministry in August 2009 requesting tax waiver. He had also sought details of unpaid taxes and bills after the country turned into a republic.

According to sources, outstanding dues and tax liabilities will cost the former monarch a whopping Rs. 200 million. Before the republic, the then palace had enjoyed a complete tax holiday. The former king was interested in paying taxes after Nepal turned into a republic. “The decision brings him and his family under the tax net. He has to pay taxes and related liabilities after May, 8, 2008. The government will collect taxes and tariffs as he has become a common citizen,” said Singh.

The meeting also endorsed the bill related to arbitration that mostly encourages reconciliation between two parties in a single case.

As the government has motivated people to opt for mediation rather than go to higher courts if a case involving them does not receive the desired verdict. Though the programme was launched across the country, a proper law was lacking.

According to Minister Singh, a writ petition can be lodged in all 75 district courts following the bill’s endorsement

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