KATHMANDU, July 24: Customs revenue contributed around 40 percent of the total revenue collection by the government in the last Fiscal Year (FY) 2023/24.
The records with the Department of Customs (DoC) show that the customs offices across the country collected revenue worth Rs 420.16 billion in the FY 2023/24. The customs revenue, which mainly includes import duty, excise duty and value added tax, made up 39.71 percent of the total revenue collection of Rs 1.058 trillion during the period.
According to the DoC, the amount fell short of the target by Rs 207.59 billion. The collected customs revenue stood only 66.93 percent of the total target of Rs 627.75 billion.
The customs revenue amount in the last FY, however, was 7.54 percent more than the amount collected under the heading in the previous FY. In FY 2022/23, the government collected Rs 390.70 billion in customs revenue.
Biratnagar Customs Office faces revenue collection challenges i...
DoC officials pointed at the ongoing economic slowdown as the main cause behind falling short of the revenue collection target in the review period. The decline in economic activities took its toll on the total revenue collection, adversely affecting the customs revenue, which makes up the main part of the country’s financial source.
In the last fiscal year, the government generated revenue of only 74.44 percent of the target of Rs 1.422 trillion.
Government records show that there was a massive fall in private sector lending by the Banks and Financial Institutions (BFIs) and pathetic expenses made by the government in development of infrastructure. It affected both the investment in the construction sector and retail businesses, which largely impacted the country’s aggregate demand and merchandise imports.
In the review year, the country’s import was down 1.16 percent to Rs 1.592 trillion along with a 3.03 percent decline in export earnings.
Birgunj Customs Office, one of the main entry points for the country’s imported goods, generated a revenue of Rs 156.86 billion. The amount was 63.8 percent of the targeted amount of Rs 245.89 billion. The customs revenue that the country’s main border point earned was even less compared to the amount of Rs 157.15 billion in FY 2022/23.
Bhairahawa customs office with a revenue collection of Rs 80.80 billion stood at second place. Of the target of Rs 127.84 billion, the realization was only 63.2 percent. Likewise, Biratnagar customs collected Rs 30.34 billion, which was 59.77 percent of its revenue collection target of Rs 50.81 billion.
Meanwhile, Tatopani customs, one of the main land trade routes with the northern neighbor, collected a revenue of Rs 13.36 billion, which was Rs 4.94 billion more than the target of Rs 8.42 billion for the FY 2023/24. Trade through the Tatopani customs point slumped after the Gorkha Earthquake in 2015, followed by the coronavirus pandemic in 2020. After eight years of disrupted bilateral trade, the border crossing was reopened for two-way operation on May 1, 2023.
Rasuwagadhi customs point on the other hand missed its revenue collection target by Rs 780 million. The second important gateway of Nepal-China land trade route collected Rs 20.21 billion in revenue against its target of Rs 20.99 billion in the review period, according to the DoC.
