The Ministry of Finance (MoF) has decided to form two rapid inspection teams aiming to check the revenue leakages.
According to the MoF, one of the two teams will be led by deputy director general of the Inland Revenue Department, while the other team will be formed under the leadership of deputy director general of the Department of Customs. The first team will be mobilized in the eastern segment of the East-West Highway that stretches between Chitwan and Mechi. Likewise, the second team will patrol along the west section of the highway that connects Chitwan through Mahakali.
In recent years, the government has fallen under pressure due to the slow revenue collection. In FY 2022/23, the revenue collection stood at just 68.21 percent of the targeted amount of Rs 1.403 trillion. In the last fiscal year, the government collected revenue at 74.29 percent of the target worth Rs 1.472 trillion.
The government makes a notable amount of revenue out of the taxes imposed on imported goods almost every year. The records with the Department of Customs (DoC) show that customs revenue contributed around 40 percent of the total revenue collection of the government in the last fiscal year.
In recent years, mainly in the post COVID-19 period, the government has been criticized for failing to control illegal trade through the open border with India. A study conducted by the Federation of the Nepalese Chambers of Commerce and Industry (FNCCI) last year pointed out smuggling through the open border as one of the main reasons behind the government’s slow revenue collection.
Earlier, the MoF in its 100-day work plan talked about mobilizing rapid inspection teams to control surging illegal transactions of imported goods. Mahesh Bhattarai, spokesperson for the MoF, said the newly formed teams will work in coordination with related government bodies to effectively check the smuggling of imported goods.
