Work to meet revenue target, Minister Paudel tells employees

Kathmandu, July 29

Deputy Prime Minister and Finance Minister Bishnu Prasad Paudel has instructed the employees of the Ministry of Finance (MoF) to work so as to meet the annual revenue target for the current Fiscal Year 2024/25.

Speaking at a programme held at the MoF on Monday to review status and achievement of the annual revenue of the last FY 2023/24, DPM Paudel stated that there was no alternative to meet the target of revenue collection approved by the parliament. He directed all the high officials and staff to work with all their strength to achieve the target.

“We are in transition in terms of revenue mobilisation. We cannot achieve our goals if we move forward according to the current trend and practice," he said. "Let's assess the weaknesses and control the leakage. Let's not allow weakness in revenue mobilisation."

The government has set the revenue target of Rs. 1419 billion for the current FY 2024/25. The size of budget for this year is Rs. 1860.3 billion.  

Asking to maintain cordial relations with the industrialists and taxpayers, DPM Paudel said that that it was necessary to explain to all taxpayers that they should be afraid of their weaknesses but not afraid of the tax administration. He also instructed the employees to move forward by creating an environment that motivated them to pay taxes.

Vice-Chairman of the National Planning Commission (NPC) Prof. Dr. Shiva Raj Adhikari suggested to proceed with a clear strategy of revenue collection.

Likewise, Governor of the Nepal Rastra Bank, Maha Prasad Adhikari, pointed out the need for policy changes to make revenue mobilisation effective to address and accommodate the changes in the tax administration, and resources.

Finance Secretary, Madhu Kumar Marasini, stated that more attention should be paid to the changing structure of the economy as it is gradually moving towards the services sector. Likewise, Revenue Secretary Dr. Ram Prasad Ghimire said that the taxpayers should be treated in a friendly manner and proceed with the necessary facilitation.

In FY 2023/24, only Rs. 1082 billion was collected in revenue against the target of Rs. 1422.5 billion.

High dependence of revenue on import and reduction in import, contraction in industrial production, construction and trade has directly affected revenue mobilisation, the meeting concluded.

Meanwhile, in the first two weeks of the current fiscal year, the government has collected Rs. 18.88 billion revenue. The government expenditure from the treasury during the same period is Rs. 19.34 billion. 

Published in The Rising Nepal daily on 30 July 2024.