POKHARA, Aug 3: The Inland Revenue Office Pokhara has decided to collect an additional Rs 25 million in taxes from paragliding companies operating in the region. The office initiated an investigation after receiving complaints of tax evasion, during which it seized documents from various paragliding companies. Based on its findings, it has taken action and imposed extra tax liabilities.
Renu Timilsina Bhattarai, the spokesperson for the Inland Revenue Office Pokhara, said that the companies failed to issue proper invoices for a portion of their transactions in the previous fiscal year, leading to at least Rs 25 million in additional taxes due.
"Following complaints of tax evasion by paragliding companies in Pokhara, we conducted an investigation. It was found that the companies owed more taxes than previously declared," she said, "On average, each company owes around Rs 500,000 in extra taxes, leading to a total of Rs 25 million."
There are 53 paragliding companies registered in Pokhara. According to Bhattarai, not all are actively operating, so the additional taxes will only be levied on those engaged in business activities.
Efforts we put into our work are hardly visible
"Although 53 companies are registered, some haven't been operating. Those that are active are liable to pay the additional taxes," she said.
She also noted that some individuals registered and operated more than one company. The investigation covered all documents of active paragliding companies from mid-July to mid-March of the previous fiscal year.
"Following the complaints, we seized documents and launched an investigation. All records were collected through the umbrella organization, Nepal Airsports Association (NAA)," she said, "We also collected supplementary documents directly from the companies."
According to her, many companies failed to maintain proper transaction records or pay taxes. Although they operated flights within the quota set by NAA, tax evasion was still detected.
"Most companies were found to have evaded taxes, which led to this enforcement action. Some companies have not even acknowledged the official notice. Their transaction data does not match the figures we received," she said.
Anil KC, president of NAA, confirmed that the Inland Revenue Office collected files from all companies for investigation. "There were problems before the current NA executive committee was formed. Disputes arose even over the prices charged to tourists for flights. Proper management was lacking during that time," he said, "The new executive committee took over in August-September and started addressing these issues."
According to KC, a single paragliding flight in Pokhara currently costs between Rs 7,500 and Rs 8,500. The price difference created confusion in tax calculations.
"Some companies charged Rs 7,500 and paid taxes accordingly. Others charged Rs 8,500 and paid taxes based on that," he said, "However, the tax office applied the higher rate of Rs 8,500 across the board, making it seem like all companies were under scrutiny."
He said that some companies lacked transparency in financial transactions, making the enforcement inevitable.
KC also said that efforts have been intensified to ensure financial discipline. Now, companies issue boarding passes only after taxes are paid and receipts are verified. Despite it being the off-season, about 50 tourists take paragliding flights daily in Pokhara. However, with around 250 registered pilots, many remain without work.
