Tax authorities attribute a fall in revenue collection to growing cross-border smuggling

Published On: September 27, 2023 09:31 PM NPT By: Republica  | @RepublicaNepal

KATHMANDU, Sept 27: The government authorities related to tax revenue have concluded that the rise in smuggling is the major cause behind a massive fall in revenue collection.

The three authorities in the segment--Inland Revenue Department, Department of Revenue Investigation and Department of Customs (DoC)—through a meeting have reached a consensus that the revenue collection is hit by an increasing cross-border illegal trade. DoC’s Director General Shova Kanta Poudel said the revenue collection has gone down mainly due to the smuggling through the open border with India.      

According to Poudel, the three government entities have planned to work in collaboration to minimize the cases of smuggling. “In addition, we will increase surveillance in the border areas with the help of Nepal Police and Armed Police Force.  

The government has been facing the main challenge to manage adequate revenue to meet its financial liabilities. A drop in imports together with the ongoing recession has largely affected the government’s revenue collection drive.

The records with the Finance Comptroller General Office show that the government’s revenue collection as of Tuesday stood at Rs 172.91 billion. The amount was Rs 8 billion less compared to that collected in the same period of the last fiscal year. 


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