The Finance Minister, Bankers put up a Front in the All-round Siege

Kathmandu: Commercial banks have also put up a barricade against Finance Minister Prakash sharan Mahat. On Wednesday, the Governor of Central Bank called a meeting of the Chief Executive Officers (CEOs) of commercial banks on the same day that the Supreme Court issued the order to show cause in the writ filed by 13 commercial banks.

Even though the National Bank said that it was a regular financial discussion, it is understood that there was also a discussion about the issue created by the government, the Ministry of Finance the Internal Revenue Department under the Prime Minister’s Office and the Federal Parliament.

After that meeting, it is understood that the bankers also held a meeting to form a blockade against the finance minister. After learning that Finance Minister Prakash sharan Mahat’s resignation has been repeatedly discussed in the cabinet, they have advised to strengthen the protest. The bankers have fallen out with the finance minister over the 120 million cap on loans and the provisions made in the financial bill for the current financial year.

In the program, various information related to insurance, based on the report of the Auditor General, Finance Minister Mahat has mentioned in the economic bill the provision of taxation on income from mergers or acquisitions of banks and FPOs.

Banks have filed separate petitions in the Supreme Court against the income tax of FPOs and profit tax on mergers and acquisitions, claiming that the finance minister refused to remove the bill after it was presented to the parliament. The Constitutional Bench of the Supreme Court has issued a show cause order in the name of the opposition while conducting a preliminary hearing on the two writs and has called both sides for the discussion of the interim order on the 22nd of Kartik.

Although the first opponent of the writ was the office of the Prime Minister and the Council of Ministers, especially the banks have targeted the Ministry of Finance. Similarly, the Internal Revenue Department and the Federal Parliament have also been made opponents.

Nepal Investment Mega Bank is the leader of both writs. However, banks are divided into two poles according to the subject matter.

Standard Chartered and Nepal SBI Bank have filed a writ against the imposition of tax on the premium of FPO. Sanima, Siddharth, NIC Asia, Kumari, Himalayan, Prime Commercial, Prabhu, Global IME, Lakshmi Sunrise and Machhapuchhre Bank have filed a writ against the provision of taxation on bargain purchase gains of mergers and acquisitions.

Standard Chartered and Nepal SBI Bank have filed a writ against the imposition of tax on the premium of FPO. Sanima, Siddharth, NIC Asia, Kumari, Himalayan, Prime Commercial, Prabhu, Global IME, Lakshmi Sunrise and Machhapuchhre Bank have filed a writ against the provision of taxation on bargain purchase gains of mergers and acquisitions.

Citizens, NMB, Nabil and Nepal Investment Mega Bank are involved in both the writs. They have also said that this step is against the constitution. In Section 26 of the Economic Act, it is provided that if the tax is not filed according to the Income Tax Act, the dividend amount distributed as bonus shares from the FPO at a premium price during the fiscal year 2078-079, if the tax is filed by the end of November 2080, the fee and interest will be waived.

In section 27, if the income from the profit received in merger or acquisition is not included in the income for tax purposes and the tax is not filed, the tax on the income for the financial year 2078-079 will be waived if the tax is filed before the end of November 2080.

The governor came down to confrontation :

Mahaprasad Adhikari of Rashtra Bank has himself started to trouble the finance minister. It is said that the main reason for calling the CEOs of the commercial banks to an emergency meeting on internal plans was to tighten the blockade against the finance minister the day after the then head of government, KP Oli, who appointed the leaders and officials of the main opposition parties as the governor, addressed the parliament.

An expert who closely observes this activity told Bimapost, “The governor has come into conflict with the government due to the anger expressed against him in the Parliament.” It will be productive for them.