I occasionally visit one of my brothers in his handicraft factory. He had been exporting to China, Nepali handicrafts for past 15 years. I idolize him for his hard work and patience to work with the Nepali system. Not only government but also his vendors and buyers. Though his 90% buyers are Chinese, he says it is as hard to work with them as it is with any other nationalities. “Tetikai Nepali sanga kaam garna garo bhanchan, Chinese sanga garey pacchi Indian haru lai birsincha baa!!”

So today, randomly I went to his factory to pick few things and I was treated with a nice cup of steaming hot coffee in this rainy day in Kathmandu. Somewhere I heard he is one of a major exporter from Nepal to China. And since he exports, he gets his VAT return every year. So my calculation is, if he exports goods worth 1 crore (10 million) he gets 13 lakhs back (1.3 million) each year. It was a very hesitant question to ask anyone's business numbers, I dared to ask him how much does he export each year. Surprisingly he was very comfortable to answer, maybe coz he has all his paperwork and account well maintained in ek number hisab.
For once I was spaced out with the amount he said. He also added that it has good returns if one can work a little harder and export goods outside Nepal. You dont need to send it to Europe or America. You can just send it to India or China and make a lot. So I wanted to clear out if the VAT returns actually comes to his pocket. He chuckled. “baini, you really think I will run around crazy during the year ending if I had no returns?”.

I know I was very stupid to ask that. Then my calculative brain started working. Again asked “Dai, 13% purai firta aaucha?”. This time he laughed. “hey bhagwan! Keti Nepal ma purai paisa firta aaye ta gajab huncha. I only get 8% of it, rest they keep it.”

So the story is, he gets his 13% return from the Nepal government but in the process to get back, the government officials will take their commission aka cut which varies according to how much you can bargain and negotiate. It all depends on how good you are with these kinda negotiation. My dai is good at these taktuk negotiations. So he got his 8% back. But there is his another cousin, who only gets 4-5% of his returns. Why?? coz he send a middleman to bargain and that middleman took his percentage which apparently this guy didnt know about ( I call him not only stupid but king of imbeciles coz he was lazy not to have a hawk eye on his business returns). My point is not about how much percentage each one of them are getting but how shamelessly and with audacity, the government officials are taking commissions. This is not a new story, it has been going on for generations. When I asked my dad about this, he says that it has actually grown more with, more educated guys getting involved in the system. Previously the Subba and Kardars used to say “ herera dinnus na” but now the guys are smarter and they calculation their benefits and have their numbers pre determined.

“Aaba system nai corrupt bhaye pacchi sabai le aatt garcha ni” is my dad's comment. If an authority like CIAA is lead by a state proclaimed ineligible and useless person called Mr. Lok Man Karki, who wouldnt dare, right?? This is called game of power. 2 weeks ago, I overheard in a tea shop conversation ( oh these are the places where the most intellectual debates and political analysis takes place....trust me), an intellect was saying that each month Mr. Karki has to submit 25 crore ( how much is that in a million plz calculate) to Mr. Prachanda. I dont know if this is true or speculation but I want to believe it to be true. Now think how will Mr. Karki earns to meet the 25 crore each month....mind it this is only for Mr. Prachanda and he needs to make for himself as well.

The entire calculation made me feel so bad for people who are working hard to make money, and in so many ways keeping the Nepali culture alive and promoting. But if I export and I only get 8% out of my 13%, honestly I will just give them their 5% and keep my share and just keep working. This is how it works in Nepal and I am not going to retaliate. This is one of the smallest sad story of people working in Nepal. We are helpless and we are controlled by people who have half the ability to do things for the country. It is not being pessimist but practical in a scenario like this. This is sad!

लोक मान प्रचण्ड प्र म भए देखिका दाईना हात बनाइएको हो | प्रचण्डको कवच हो लोक मान |

Magorkhale1,

लोकमान प्रचण्डका दाहिने देब्रे तल माथि उत्तानो घोप्टे हात भए पनि नेपाली जनताले बोल्नलाई गोविन्द के सी नै चाहिने??? जब सर्वच्च अदालतले अयोग्य भनेर करार गरिसके पछि पनि सरकारले तेस्तो उच्च आहुदामा कसरि राखेको त ??? यो भनेको जनताको अधिकार लाई हनन गरेको हो के !! अनि सबले आट गर्छन दुध को साक्षी बिरालो भनेको जस्तो भयो !!

यो मुजी लोकमान र प्रचन्दे को नाम सुन्यो कि कन्चद तात्छ !!!

मलाई कति रीष उठ्यो होला when I came to know my brother is giving away his hard earned money to people who has not put in any effort but want a cut just coz they are in a strong position and are bureaucrats and these people are daring it coz of these A-holes who are not only sucking the life out of the country but also encouraging adultery in every possible way!

I really liked this post of urs ambrosia. I had no idea about VAT returns in Nepal. Good to know about new thing but sad that the experience wasnot so good.
ब्यापारीले त १३ भने नि ५-८% त पौदो रैछ। तर ती ग्राहक जल्ले अफुले किनेको सामानको 13% VAT तिर्छन् उनीहरुको सांच्ची अनि त्यो कसरी लिनु फिर्ता ? कि के हुन्छ? मेरो सामान्री बुझाइमा त ब्यापारीले सामान्को vat 13% ग्राहक लाई तिराउदो रैछ तर return चाइ आफुले खादो रैछ जस्तो लाग्यो, हो? कि कस्तो हो तरिका? just curious, plz clarify how it works. :)

Nozzs
मैले पनि मार्केट आहिले बिस्तारै सिक्दैछु ....as far as I know...export मा चाही VAT returns छ.... जुन हामीले daily तिर्छौ त्यो चाही सरकारको मा जान्छ....अब कुरो हामीले VAT तिरेको थाम बाट त्यो हिसाब ले जान्छ कि त्यो हिसाब गोलमाल हुन्छ त्यो चाही ताहा हुन्दैन.... There are a lot of loop holes. The restaurant might charge you VAT but it will not pay it to the govt. same with products you buy. But when you get a VAT bill you can add it to your account as expense ( consider you bought the stuff in your company's name) and if in case there is a VAT investigation and they check that it is not being paid...that company will get into trouble for giving u a fake VAT bill....
This is my understanding :) ....I hope this was helpful.

@nozzs : "मेरो सामान्री बुझाइमा त ब्यापारीले सामान्को vat 13% ग्राहक लाई तिराउदो रैछ तर return चाइ आफुले खादो रैछ जस्तो लाग्यो, हो?"

बुझाई मा अल्लि फरक पर्यो \ हामीले तिर्ने vat त सरकारलाई नै बुझौचन \

यी चै निर्यात गर्ने ब्यापारी परे \ यिनले हस्तकला आदिका सामान बनाउदा किनेका कच्चा पदार्थमा तिरेको VAT , निर्यात गरेको प्रमाण पेश गरेपछि फिर्ता पाउने हुन् \

thank you so much nepalilaure..... prastha gari dinu bhayeko ma.....muri muri dhanyabaad chha :)

thanks for clearing it guys. sab thaha nabhaye ni ali ali clear chai bho. customer ko vat sarkar lai jado raicha. maile ta sab byapari le return lido raicha sodeko. ambrosia ko export business ko kura chai ali farak ho jasto lagyo. khai kunni kk po ho.. ajhai kehi kura bhaye share garum hai. thaha pau na naya kura haru.
ani ambrosia ji le kasto kisim ko handicraft export garnu huncha ni. wood craft, thanka art ni garnu huncha? direct artist n local market bata uthaunu huncha ki arko third person or collector bata?

nozzs,

मेरो दाईले गर्नु हुन्छ मैले होइन तर म काम सिक्दैछु हेरुम के हुन्छ जिन्दगानीमा :)

Didn't know about VAT returns until now. Keep writing @Ambrosia

c864916

first I ll start calling you C and numbers :P

second...will try to keep writing :) thank you sooo mucho