CHAPTER V

SUMMARY, CONCLUSION AND RECOMMENDATION

5.1 Summary

This research work entitled EFFECTIVENESS OF RESOURCE

MOBILIZATION THROUGH VAT IN NEPAL, has been carried
out to ponder into the theoretical knowledge of VAT and to examine the
administration system of VAT especially in the Kathmandu valley, to
assess the post-implementation period of VAT as compared to
the period before the implementation in connection with generating
revenue, to examine whether VAT is superior to sales tax. To achieve
those objectives, different analysis has been done with the help of 26
years data (i.e. from the fiscal year 1990/1991 to 2015/2016) and
questionnaire developed by the researcher.

VAT is most recent innovation in the field of taxation system. VAT is

tax based on goods and services. The base of VAT is the value
addition that takes place during process of production and
distribution. Since this tax is based on consumption the burden
of this tax must be borne by the consumer. VAT is based on
self- assessment system. Under the self-assessment system, a
taxpayer is required to keep a proper account of his all business
transaction. Therefore, the returns files by the taxpayers by assessing
their tax liability must be accepted by the tax administration not
only in

principle but also in practice. VAT has done away with administrative
procedures such as taking approval of price for purpose of sales tax,
submission
of annual statement of accounts tax assessment by the tax officers
stamping of invoices, submission of invoices to the tax office along with
the tax returns etc.

VAT is transparent tax system that is based on taxpayer's transaction. VAT is

not only transparent but also demands transparency in other tax system as well

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