Govt introduces 'Taxpayer Incentive Gift Programme' to encourage consumers to obtain invoices

KATHMANDU: The government has introduced the 'Taxpayer Incentive Gift Programme Operation Procedure, 2083' to encourage consumers to obtain invoices, strengthen tax compliance and improve records of actual transactions.

The Ministry of Finance endorsed the procedure under powers granted by the 'Economic Procedures and Fiscal Responsibility Act, 2076', and said it has already come into effect. The Inland Revenue Department (IRD) will implement the programme in line with the approved annual budget and plans and may appoint an event organiser for its operation and management if required.

Under the scheme, consumers who buy goods or services for personal use worth more than Rs 100 at a time within Nepal will be eligible to participate. The system will generate one gift ticket for each eligible transaction supported by a valid bill or made through electronic payment. Each bill or electronic payment may be used only once for participation.

Bills from e-payments made between the first and last day of a month will be automatically entered into that month’s gift-hamper programme. Purchases made through payment service providers using electronic payment will also be entered automatically. For cash or other non-electronic payments, purchasers must enter the bill number, seller’s PAN, bill issue date, total amount, payment method, and the purchaser’s name and mobile number into the department’s system within the prescribed time; inclusion will follow automated verification.

Certain types of bills are excluded from the scheme. Bills for business purchases, those issued in the name of government bodies or public institutions, and receipts for telephone, internet, electricity, vehicle and transportation services, airline tickets, and purchases by individuals without a Permanent Account Number (PAN) will not be eligible. An individual cannot participate more than once using the same bill or the same electronic payment.

Winners will be selected by an automatic draw on the 1st and 16th of every month. The first phase will cover transactions from the 16th of the previous month to the end of that month; the second phase will cover transactions from the 1st to the 15th. One winner will be chosen each day and one 'bumper' winner every 15 days. Senior officials, representatives from organisations and journalists may be invited to witness the selections.

Daily winners will receive a gift worth Rs 133,334, while the bi-weekly 'bumper' winner will receive Rs 1,000,000. A 25% tax will be deducted from incidental profit under the Income Tax Act, 2001. Winners will be notified by mobile and email, and their names will be published on the department’s website and social media.

To claim prizes, winners must apply to the nearest Inland Revenue Office within 15 days of the announcement, in person or via a representative, submitting the original bill or receipt, citizenship or other official ID, bank account details and PAN. The office will verify documents within 10 days and deposit the prize directly into the winner’s bank account. If documents are found to be false or forged, the matter will be referred to the relevant authority for action. Unclaimed prize money after the 15-day period will be deposited into the Prime Minister Disaster Relief Fund.

The government said the programme is an important step to increase voluntary participation in the tax system, encourage consumers to obtain bills, expand electronic payments and reduce revenue leakage.