Kathmandu, Jan. 21 -- Itahari Drinking Water Users' Committee is not paying the government the tax on the amount it saves after its operating expenses. In the last fiscal year, the committee saved around Rs25 million.

In order to renew its registration at the District Water Resources Committee, the committee needs to furnish a tax clearance certificate. The tax office has asked the committee to pay a 25 percent tax on the amount saved after reducing operating costs and other expenses. But the committee, which was formed as a non-profit organisation, is not ready to pay the tax for the saved amount.

"You cannot treat the saved amount as profit because we don't distribute the amount as a dividend," said Ram Prasad Chaulagain, chairman of ...