Businesses Affected by Gen-Z Protests Must Report Damages to Tax Office Within 30 Days

Kathmandu — Businesses and industries that suffered losses due to arson, vandalism, and looting during the Gen-Z movement on Bhadra 24 (September 9, 2025) are required to report those damages to their respective tax offices within 30 days, as per government regulations.

According to Rule 39Ka of the Value Added Tax (VAT) Regulations, taxpayers can claim deductions on VAT paid for goods or properties that were damaged or destroyed due to incidents such as fire, theft, accidents, or destructive activities. However, to be eligible for such deductions, they must file an application to the concerned tax officer within 30 days of the incident.

Chartered Accountant Shesh Mani Dahal explained that under VAT law, taxpayers must formally notify the tax office in writing about any loss or damage to property. “The application should be registered at the tax office, and a copy should be kept for record,” Dahal said. “If the taxpayer fails to inform the office within 30 days, the loss may be disqualified, and the tax authority can impose a 13% VAT on those goods.”

He further clarified that even if the damaged property is insured, the taxpayer is still required to inform the tax office. The written application should mention that “the property has been damaged and that the loss should be verified and valued as per the VAT law.” However, mentioning the estimated loss amount is not mandatory, he added.

For businesses not registered under VAT, there is no legal compulsion to submit such notice. Nevertheless, Dahal advised that providing the information is beneficial to avoid future complications.

During the Gen-Z movement, attackers targeted major private businesses including Bhatbhateni, CG Group, Hilton Hotel, and others, causing widespread arson, vandalism, and looting. The total estimated loss is believed to have exceeded Rs. 80 billion.

In response, the government is preparing a reconstruction and relief plan, which may include tax and customs duty exemptions for affected businesses as part of its economic recovery efforts.