Latent Factors of Non-filer: An Analysis of Data from Inland Revenue Office, Surkhet

Abstract

This study examines the inducing factors of non-filters in income tax that analyses the data from one of the remote administrative unit of the Inland Revenue Department of Nepal, Surkhet. Descriptive analysis as well as a Chi-squared test is carried out to examine the impact of government grant policy on elevating non filers. “Grant in agriculture” is assessed as one of its latent factors. Result confirms its significant positive impact on upraising non-filers with a minimal impact on revenue. Therefore, it suggests to free-off grant seekers from compulsory registration in income tax as one of the eligibility criteria for grant application.