Ncell pays Rs. 4.96 B for licence renewal

Kathmandu, Aug. 20

Private telecommunications service provider Ncell Axiata has paid Rs. 4.96 billion to the government towards the renewal fee for its mobile service licence.

Of the total amount it paid to the Nepal Telecommunications Authority (NTA), Rs. 4.25 billion represents the principal amount of the outstanding instalment of the licence renewal fee.

The payment also includes Rs. 649.26 million in interest for 328 days from 23 August 2025 to the end of the 2025/26 fiscal year, and a further Rs. 65.32 million in interest for 33 days from 17 July to 18 August 2026, the company said.

Ncell had already paid the instalment and interest due up to 22 August 2025. On 22 August last year, the company paid Rs. 3.29 billion, following an earlier payment of Rs. 2 billion on 13 July 2025.

The government had allowed Ncell to pay the Rs. 20 billion mobile service licence renewal fees in four instalments. A Cabinet meeting in August 2024 had decided that the outstanding instalments would carry annual interest of 10 per cent.

The company had initially applied for licence renewal after paying Rs. 4 billion as the first instalment in May 2024. The government subsequently allowed the remaining amount to be paid in instalments.

Ncell said that it has contributed around Rs. 375 billion to the government in taxes and various fees since its establishment. The payments include licence and renewal fees, royalties, telecommunications service charges and income tax, among other government levies.

The company began operations after receiving a GSM cellular mobile service licence on 31 August 2004 under the brand name Mero Mobile.

 Published in The Rising Nepal on 21 August 2026.   

Keep taxpayers satisfied: Minister Wagle

Kathmandu, July 23

Finance Minister Dr. Swarnim Wagle has instructed tax administrators to collect revenue by keeping taxpayers satisfied, not by intimidating them.

Addressing tax officers under the Inland Revenue Department (IRD) from across the country at the department's headquarters in Lazimpat on Thursday, he urged officials to adopt a taxpayer-friendly approach.

"Collect taxes by keeping taxpayers happy, not by harassing them, I want to hear people say that the tax administration has improved significantly, that paying taxes is no longer a burden, and that no one feels intimidated," " he said in a statement issued by his secretariat.

FM Dr. Wagle instructed tax administrators to expand the tax net through voluntary tax compliance rather than through coercion or fear.

"I do not want to hear that taxpayers are joining the tax system because they are frightened. Nor should there be a situation where anyone feels compelled to hide from paying taxes," the finance minister said.

He also encouraged officials to speak openly if they faced shortages of manpower, infrastructure, information technology, or any other resources required to strengthen tax administration. He made it clear that the government would spare no effort in rewarding officials who perform exceptionally well and contribute to increasing state revenue, read the statement from his secretariat.

"Taxpayers must be satisfied. Tax officials must facilitate compliance. Revenue targets must be achieved. We must meet the inland revenue target under the Rs 1.6 trillion revenue mission," instructed Dr. Wagle.

Describing this year's budget as a turning point for the economy, Dr. Wagle said it is set to change the country's economic direction. He added that the budget over the next four fiscal years would lay the foundation for the economy the government intends to build.

He directed the IRD's leadership to ensure the effective implementation of the tax relief schemes announced in the budget, make the taxpayer incentive programme a success, enhance taxpayer awareness, and promote the digitalisation of business transactions.

Stating that the ministry was making significant efforts to have Nepal removed from the Financial Action Task Force's grey list, he urged the tax administration to pay close attention to offences related to money laundering.

Dr. Wagle also said that the career development of tax officials would be determined primarily by their performance and contribution to the state. He urged employees not to seek transfers through political or personal influence.

Published in The Rising Nepal daily on 24 July 2026.         

KMC announces tax incentives, penalty waivers for FY 2026/27

Kathmandu, July 18

Kathmandu Metropolitan City (KMC) has introduced a range of tax incentives and penalty waivers for taxpayers for the current Fiscal Year 2026/27. Through its Kathmandu Metropolitan City Finance Act, 2083, the Capital city is implementing tax concessions and penalty remission for a year.

The Act came into effect after being authenticated by Acting Mayor Sunita Dangol on July 16. The legislation provides taxpayers with a range of special discounts, concessions and waivers of penalties on outstanding tax liabilities, the KMC informed in a statement on Saturday.

It said that the special incentives have been announced to encourage taxpayers to pay their dues on time.

Taxpayers who settle their property tax, business tax and rental tax for this fiscal year by the end of mid-October 2026 will receive a 10 per cent discount on the total tax payable.

This period is the first quarter of the current fiscal year.

Likewise, the metropolis has announced significant relief for taxpayers with unpaid taxes from previous years. Taxpayers who clear all outstanding tax liabilities in a single payment by mid-October will have all penalties accumulated in previous years fully waived.

The city has also introduced special provisions to encourage small businesses and support targeted groups. Businesses with capital of up to Rs 500,000, registered in the name of a woman, indigenous person, dalit, person with a disability, or a young entrepreneur under the age of 35, will receive a 40 per cent discount if they pay their taxes by mid-October.

If the business owner is a permanent resident of Kathmandu Metropolitan City, the discount will increase to 50 per cent.

"New industries providing employment to at least 20 people will be entitled to a 95 per cent reduction in business tax for up to three years," read the statement. To promote tourism and improve urban management, the Capital city is implementing an additional 10 per cent discount on property tax for hotels and resorts.

Similarly, buildings constructed solely for commercial parking purposes will be fully exempt from property tax for 10 years from the date of completion. Residential buildings equipped with rainwater recharge systems within their compounds will also be eligible for up to a 95 per cent reduction in property tax.

As per the new rules, taxpayers earning up to Rs 240,000 annually from rent need to pay 5 per cent rental tax, while those earning more than Rs 240,000 annually have to pay 7 per cent rental tax.

The Act also exempts one business signboard of up to 15 square feet used solely for business identification from advertisement tax, and signboards produced in the Ranjana script will receive a 95 per cent tax concession. This measure is taken to promote local language and culture, said KMC.

Likewise, to ease taxpayers' financial burden, KMC has allowed taxes for the current fiscal year to be paid in up to three instalments. Taxpayers may pay 40 per cent of the total amount in the first instalment and 30 per cent each in the second and third instalments.

Taxpayers with outstanding liabilities exceeding Rs 10 million may also apply for a multi-year instalment facility, but this must be approved by the Metropolitan City.

According to KMC, it adopts a stringent approach towards taxpayers who repeatedly ignore tax obligations and official notices. Under the new provisions, the City may seal the business premises of tax defaulters, freeze their bank accounts and recover unpaid taxes in the same manner as government dues.

Published in The Rising Nepal daily on 19 July 2026.         

Experts urge 55% tax hike on cigarette in upcoming budget

Lalitpur, May 24

Experts have demanded a raise in cigarette excise duty by 55 per cent in the upcoming budget of 2026/27, and recommended continuing with annual tax increase above inflation on all tobacco products.

This will increase the government revenue by Rs. 11-12 billion and is likely to be a catalyst in reducing tobacco use, according to estimates.

"Simplify the 5-tier cigarette tax structure and gradually move toward a uniform specific excise tax system," they said while speaking at a policy dialogue on 'Rationalising tobacco, alcohol and sugary drink taxes' organised by Nepal Development Research Institute (NDRI) in Lalitpur on Sunday.

The NDRI said that the country should aim for strong reduction in tobacco use with ambitious tax rates.

The World Health Organisation (WHO) has recommended raising tobacco excise duties up to 70 per cent of the retail price. But Nepal is lagging much behind this target.

The tobacco tax activists also suggested to introduce a licensing system for tobacco retailers and distributors through local governments. Currently, any retailer, individual or café can sell tobacco products while licensing is implemented in case of alcohol distributors and retailers.

Dr. Jaya Kumar Gurung, Coordinator of Tobacco Control Programme at the NDRI, said that the government, in the past three years, has raised tax on tobacco and alcoholic products by 2-5 per cent making negligible increase in the overall retail price. This rate is also way below the average annual inflation rate which generally hovers above 5 per cent.

It means, tobacco and alcoholic products are actually becoming cheaper.

Demanding for a system to automatically adjust the excise duty on alcoholic products in line with the Consumer Price Index, the NDRI said, "Currently, due to tax rate adjustments made through the annual budget in Nepal, excise duty rates are failing to keep pace with the rate of inflation. As a result, it appears that alcoholic products are becoming even more accessible and affordable over time."

 

Positive impact on revenue

In FY 2021/22, the government increased the excise duty on tobacco products by 25 per cent which resulted in a rise of Rs. 4.1 billion in government revenue. The following year, excise duty went up by another 17 per cent.

Statistics have shown a positive impact of alcohol on revenue – in the last decade the sector saw about three-time growth in such revenue. Currently, Nepal is implementing the lowest tax (41 per cent) on cigarettes while it is 58 per cent in India, 61 per cent in Pakistan, 73 per cent in Bangladesh and 68 per cent in Sri Lanka.

A raise of 10 per cent in retail price of alcoholic products will send down its consumption by 5-8 per cent. For example, alcohol's consumption had decreased by 64 per cent in Sri Lanka after the country increased tax rate by 20 per cent in 2023. However, it should also be noted that the country was trying to come out from a disastrous economic recession then.

The NDRI recommended that adopting the WHO's '3 by 5' initiative, tax on alcoholic products should be increased by at least a significant percentage. Token tax increases, such as the current 2 per cent, cannot bring about any significant reduction in alcohol consumption, instead, the state is losing out on the opportunity to collect large amounts of potential revenue.

Likewise, a demand was also made to expand the tax base to carbonated, non-carbonated drink, energy drink, sweet tea/coffee and flavoured milk and syrups.

Tax expert Dr. Rup Khadka suggested an administrative setup to effectively implement the tax rise while consumption discouragement campaigns should also be carried out at the same time.

Economist Professor Shiva Raj Adhikari said that the high tax on tobacco and alcoholic drinks not only reduces the consumption but also increases savings of the family, and they need to spend less on such products and health treatment.

"The tax hike decreases consumption of tobacco and alcohol especially in youth and low-income group," he said.

According to recent statistics presented by the NDRI, Nepal has 34 per cent tobacco use prevalence in above 15 years age. This means 6.7 million Nepalis consume tobacco. It kills 39,200 lives each year.

 

Sin-tax to health insurance

Speaking at the programme, former health minister Dr. Toshima Karki said that the government is in discussion if the revenue raised from 'sin-tax' could be mobilised in health insurance programmes.

Lawmakers from various political parties said that the government should implement step-wise taxation, via the budget of FY 2026/27, on tobacco and alcohol to make it 75 per cent in the next few years. Children should be strictly prohibited from buying and consuming such harmful products, they said while adding, "Government's focus should be public health and greater social benefit, not the revenue."

According to them, it is high time to raise tax on tobacco, sugar and alcoholic products. 

Published in The Rising Nepal daily on 25 May 2026.  

Revenue Advisory Committee begins work

Kathmandu, Feb. 28

The Revenue Advisory Committee formed to provide revenue-related recommendations to the government for the budget of the upcoming Fiscal Year 2026/27 has started its work, informed the Ministry of Finance (MoF) on Friday.

The MoF had formed the committee on February 11.

The 12-member committee is led by Revenue Secretary Bhupal Baral and includes representatives from the Department of Economics at the Tribhuvan University, Ministry of Industry, Nepal Rastra Bank, private sector business associations, and the MoF.

The committee is tasked to offer suggestions on issues like income tax, Value Added Tax, excise duty, and taxes on education service, e-commerce and digital service, policy, legal, customs and tax policy reforms, revision of tax rates, process simplification, and restructuring of the tax administration.

It is also expected to provide recommendations on non-tax incentives, review of customs duties, checking revenue leakage and money laundering investigation, controlling of economic crimes, and resource management.

According to the MoF, the committee will provide its view on expansion of tax base, duplication of taxes among the various levels of the government, and will identify areas of non-tax revenue.

Nine sub-committees are formed under the committee to provide sectoral recommendations. They are – internal revenue, customs, revenue leakage and investigation, industry, commerce, investment and export promotion, agriculture, energy and tourism, bank, financial institutions, insurance, cooperatives and capital market, non-tax and intergovernmental revenue management, macro-economic, and anti-money laundering and investigation. 

 Published in The Rising Nepal daily on 29 February 2026.     

We contribute 10% of total national revenue: NOC

Kathmandu, Jan. 10

Nepal Oil Corporation (NOC) said that it contributed 10 per cent to the total annual revenue of the government.

Last year, it has recorded a turnover of Rs. 366 billion in a year, contributing around Rs. 124 billion in revenue to the government.

Speaking on the occasion of the corporation’s anniversary, Executive Director Chandika Prasad Bhatt said the amount paid through customs duties, road maintenance charges and value-added tax is equivalent to nearly 10 per cent of the government’s total annual revenue target.

According to him, the corporation annually supplies 63,000 kilolitres of petrol, 222,000 kilolitres of diesel, 18,000 kilolitres of aviation fuel and 46,000 tonnes of LPG. On average, about 7.5 million litres of petroleum products are distributed across the country every day.

The NOC recorded a turnover of Rs. 367 billion and earned a net profit of Rs. 13.5 billion.

Rs. 96 billion was contributed to government revenue, he added.

He also claimed that to enhance transparency in transactions, the corporation has introduced digital payment systems, bottom loading in fuel tankers and automated metering systems.

Monopoly will not last: Minister Sinha

Addressing the event, Minister for Industry, Commerce and Supplies Anil Kumar Sinha said that the benefits of long-standing monopoly would not last forever, and stressed the need for institutional reforms and greater efficiency.

He noted that despite limited capital, difficult geography and supply risks, the corporation has been successfully ensuring regular supply of petroleum products across the country. However, Minister Sinha said the corporation must further strengthen its structure, services and management systems in view of possible changes in market structure and the introduction of open competition in the future.

Likewise, according to Deputy Director Nagendra Sah, petrol in the Nepali market is currently cheaper by around Rs. 14 per litre than in the Indian market. He said a policy has been adopted to increase storage capacity from the current 10–12 days to 30 days.

Published in The Rising Nepal daily on 11 January 2026. 

Provinces still struggle to stand on their own fiscal feet

 Federalism in form, dependency in practice

From timid tax policies to revolving-door chief ministers, Nepal’s provinces have failed to translate autonomy into economic strength

 

Kathmandu, Jan. 3

In the past eight years since their creation, the provinces have failed to demonstrate their interest or innovation in finding new sources of internal revenue and expand their tax base. Reliance on the traditional sources and weak revenue administration have miserably restrained the provinces from strengthening their economy.

Currently, provinces are banking on transportation, agriculture, natural resources like construction materials and house-rent for their revenue while experts say that agriculture is not and should not be a major source of revenue. As it is in the phase of development and directly connected with the livelihood of many, it should rather be facilitated, except the commercial farming and agro-processing industries.

However, the provincial governments couldn't effectively tax the construction material industries such as collecting and distributing sand, gravel and stones. "All the provinces are following a similar traditional trend. All of them lack innovative approach and long-term strategies for revenue growth," said Keshav Raj Dhakal, Spokesperson of the National Natural Resources and Fiscal Commission (NNRFC).

A trend analysis of the Provincial Revenue (2018/19-2025/26) by a team led by Dr. Khim Lal Devkota – a Constitutional Assembly Member and expert in federalism – for the Federalism and Localisation Centre (FLC), found that agriculture's contribution is the lowest in the local tax revenue of the provinces.

"Excluding revenue sharing and royalties, motor vehicle tax contributes the largest share to the country’s local tax revenue, with 32.83 per cent. This is followed by land and property registration fees, which account for 31.21 per cent. The contribution of business registration fees stands at 18 per cent," concluded the report.

 

Spending priority, earnings unheeded      

While the governments at all levels required to follow a mandatory rolling three-year budget plan – the Medium-Term Expenditure Framework (MTEF) which requires the resource forecasts and performance targets along with detailed expenditure strategies, the sub-national governments are more focused on expenditure. As the plans and budgets have been the tools to accommodate the political and development commitments of the political leaders, projects are included in the budget at a whim of a leader or the ruling political party.

The NPC and the NNRFC have observed that revenue mobilisation plan has rarely been the priority of the provincial governments, even their budgets are largely dependent on federal grants and revenue sharing.

Former Member of the National Planing Commission (NPC) Min Bahadur Shahi said that provincial governments failed to exercise the rights stipulated for them. "At the least, they could effectively collect revenue from public commons like forests, and river and mine-based construction materials," he said.

According to Dhakal, most of the interactions with the federal government or planning agencies are centred on grant and revenue distribution. Tax expansion plan, revenue growth and reforms generally don't get priority in such meetings.

According to the Schedule 6 of the Constitution of Nepal 2015, land and property registration fees, motor vehicle tax, entertainment tax, advertisement tax, tourism tax, tax on agricultural income, service charges and fees, penalties and fines fall under the rights of the provinces.

 

Need for risk-takers

The autonomy of provinces has remained limited to the Constitution and policy documents as they look up to the federal government for financial support and development execution. They seem to be shying away from exercising their autonomy in critical areas such as tax. This is because no leaders want to take a risk of displeasing their voters. The house-rent tax is a case in this regard.

For example, Karnali projects to raise just Rs. 1.37 billion in revenue in the current Fiscal Year 2025/26 from internal sources against its annual budget of Rs. 32.99 billion. The province raised Rs. 100 million in the first quarter of this fiscal.

Likewise, Sudurpaschim estimates to manage Rs. 1.65 billion from internal sources for its budget of Rs. 33.47 billion. Koshi and Gandaki aim to raise Rs. 5.5 billion and Rs. 5.46 billion in revenue, Lumbini Rs. 7.78 billion, Madhes Rs. 9.5 billion and Bagmati Rs. 28.8 billion. Average share of internal revenue to the provincial budget ranges from about 5 per cent to 20 per cent with Bagmati being an exception.

According to FLC's analysis, internal revenue constitutes about 20 per cent share in the total income of the provinces. Including the revenue sharing, its share rises to 54.58, and share of federal grants is 45.42 per cent.

There are not only failures. Bagmati has collected 31.44 per cent of its annual revenue in the first five months of the current FY 2025/26 while the federal government's achievement stands at about 27 per cent. Bagmati collected Rs. 1.50 billion in internal revenue against the annual target of Rs. 4.77 billion. But overall receipt of the province in the five months is 24 per cent.

 

Discouraging scorecard

All seven provinces in Nepal have performed poorly in the annual evaluation by the NNFRC in 2023/24, with only Koshi scoring above the 40 – which is pass mark. The remaining six failed, with Madhes Province recording the lowest score of 20.5, Karnali 25.9, Sudurpaschim 26.1, Lumbini 34.4, Bagmati 36.1 and Gandaki 38.5.

The assessment, based on 19 fiscal, budgetary and governance indicators, found the provincial average score to be 32.25. In contrast, local governments performed better, with most scoring above 50.

According to Dr. Devkota, delay in the formulation of basic legal instruments such as Civil Service Act in provinces has also serious repercussions on their performances. He suggested the CMs to remain united to exert legitimate pressure to the federal government and their respective party committees. To the least, they should learn from the local bodies, he said.

The federal government exhibited negligence in formulating the umbrella frameworks to facilitate the sub-national governments. The latter designed the laws related to civil servants and police personnel but in absence of the umbrella legal instruments from the federal government, they remained idle. The intergovernmental council has also turned into a mechanism that only conducts meetings but achieves no progress.

While speaking at the establishment day of the PAs in 2024, former CM of Karnali, Raj Kumar Sharma, aptly defined the situation of freedom to the provinces, “How can you swim in deep water when you are thrown into it with your hands and legs tied. I don’t know if saying this is appropriate, but the situation has been the same for us."

However, although the provincial leaders agree that their failure is partially caused by the federal government's failure in building the required legal and policy framework in time, they never get united for the same cause.

 

41 governments in eight years

In a sheer display of political instability in the federal republic, the seven provinces got 41 chief ministers in the past eight years.

Lal Babu Raut of Madhes Province has remained so far the only Chief Minister to complete his full term at office. But the same province turned into political battleground in its second Provincial Assembly (PA) with five CMs from five different parties in just two-and-a-half years. Jitendra Prasad Sonal of Loktantrik Samajwadi Party and Saroj Yadav of CPN-UML served for 24 days each as Madhes CM. Meanwhile, Province Chief Sumitra Subedi Bhandari lost her post after appointing Saroj Yadav the CM and administering the oath of office at a hotel in Bardibas.

The provinces were created on September 20, 2015, while provincial assemblies were formed after the elections on November 26 and December 7, 2017. The first provincial government was formed in Karnali on February 15, 2018.

In general overview, Karnali is comparatively more stable than the other provinces with four CMs so far with two each – Mahendra Bahadur Shahi and Jeevan Bahadur Shahi, and Raj Kumar Sharma and Yam Lal Kandel – serving during the first and second PAs.

While Gandaki, Lumbini and Bagmati witnessed six CMs each in the past eight years, Koshi went through the worst experience in political stability with eight CMs – five in the last two-and-a-half years. Currently, Hikmat Kumar Karki is serving as the CM for the third time during this PA along.

Likewise, Sudurpaschim Province got five CMs.

 

Lack of political autonomy

It is no secret that the provincial governments and political leaders make their moves at the signal of federal government and their party central committees. "Provincial committees of the political parties are not autonomous while senior and competent leaders do not want to go down to the provinces. As a result, governments there have become an appendage of the central government," said Dr. Devkota.

To their worst, this is happening at a mutual consent of the political party, federal government and the provincial governments.

According to Dr. Devkota, Madhes led by Lal Babu Raut, Gandaki led by Prithvi Subba Gurung and Lumbini led by Shankar Pokhrel had a courage to resist the pressure from the federal government.

Within a year, Gurung called a meeting of the CMs in Pokhara and exhibited a unity among the provincial governments. A 29-point federal legal roadmap was also developed during that period. The centre had a majority government led by powerful Nepal Communist Party (NCP) that, in the beginning, assured a political stability which also sent a similar message to the provinces, said Dr. Devkota. He added that while the first inter-state council was called after 40 years in India, it was convened in a year after the formation of the first provincial governments.

While Madhes was vocal against the federal government for various other reasons and fought for its cause, Gurung and Pokhrel fought against their own party leadership to make their way through to institutionalise federalism.

But during the second Provincial Assembly, senior leaders joined the batch of leaders at the federal level which turned the provincial politics more immature. They are more centre-oriented and pay less attention to the public issues and political stability. As the governments formed and fell every now and then, provinces miserably failed in effective development planning, resource mobilisaion and revenue collection. This further detached them from the masses.

An official at the NPC said that the situation has deteriorated to such an extent that chief ministers are meeting even the section officers at the NPC and Ministry of Finance to get their projects included in the federal budget or get financial assurance for provincial projects.

 

Dancing to the tunes of centre

Later, the number of ministries at the provinces was increased multiple times to adjust the leaders from the ruling coalition which mostly happened at the direction of the federal government and central committees of the parties participating in the coalition.

"A new culture has been developed – the provinces seek centre's opinion and the latter directs the former," said Dr. Devkota.

This political culture is rooted so deep that the provinces couldn't function independently even when the country has a civilian government and large political parties are hesitant to exercise their political muscle.

Shahi, who is also the founder chairperson of Karnali Integrated Rural Development and Research Centre and General Secretary of the Former Planners Forum Nepal, said that the senior leaders discourage the youth leaders and federal government discourages the provinces on the pretext of lacking 'capacity'.

"We have developed a system that bars the sub-national governments from being progressive. Entire system is process-oriented and no one cares for the outcome and its impact on people," he said.

Shahi maintained that Kathmandu takes decision about the ministers and alliance in the provinces. The provincial committees of the parties neither have power nor desire to intervene in such affairs.

According to Dr. Devkota, the power of the government was devolved and restructured in the federal model but the political parties didn't restructure them according to the newly evolved system. 

Published in The Rising Nepal daily on 4 January 2026. 

Govt not in a state to alter tax rates: FM Khanal

Kathmandu, Nov. 19

Finance Minister Rameshore Prasad Khanal has said that the government is not in a position to make changes in tax and tariff rates as it wouldn't be an appropriate move for the transitional election government.

"The government might need to implement long-term initiatives to make effective reforms in the revenue but in absence of the legislative body, the current government is unable to take up such actions," he said at a public-private dialogue on 'Reform in Revenue System' organised by the Confederation of Nepalese Industries (C) in Kathmandu on Wednesday.

The dialogue was focused on the Economic Reform Implementation Workplan 2025 as suggested by the High-Level Economic Reform Recommendation Commission (HLERC).

According to FM Khanal, adjusting tax rates at this time could result in inviting opposition to the government moves which he didn't want.

However, he said that the government is serious about reducing cost of doing business and promoting exports. He informed that the government is reviewing the provisions of full audits demanded from the private businesses as they tend to increase costs of doing business.

"We are implementing IT-related reforms in revenue and facilitating various sectors. Such reforms are being undertaken to ensure that full audits are conducted only on a risk basis," he maintained.

Stating that the government is aware of the contributions the private sector has made to the revenue and other sectors of the economy, FM Khanal said that a single business house has contributed 2.3 per cent to the total national revenue.

Nepal has highest revenue to Gross Domestic Product (GDP) ratio (18 per cent) in the South Asian region.

Speaking at the programme, President of the CNI, expressed concerns over the poor implementations of the suggestions on issues related to the economy and governance reform made by various commissions and high-level committees formed in the past.

He said that there are investable funs in banks and interest rates are in single digits but market demand has not increased while industries are operating at low capacity. "It is difficult to improve the situation unless investment can be increased. In our context, reform in the tax system is necessary to increase investment," he said while adding that not only domestic investors, but foreign investors also invest only after observing the stability of tax-related policies.

Shesh Mani Dahal, chartered accountant and vice-chair of the Revenue Committee of the CNI, said that while the government said to implement the suggestions made by the HLERC, many of the provisions are yet to be implemented.

The government formed the HLERC about one-and-a-half years ago which found that there were duplications in tax implementation across the different levels of governments, about 40 per cent of the economy is operating informally and there were multiple complexities in tax administration.

"Besides traditional taxes like income tax, customs duty, excise duty, and VAT, there is an imposition of various miscellaneous taxes," said Dahal while adding that there is a practice of delayed tax assessment, yet interest is charged from the beginning.

According to him, a high tax burden discourages economic activities and results in lower revenue mobilisation.

Dahal said that maintaining stable tax rates, except in cases of extreme necessity, would establish certainty for investment.

Participants of the dialogue demanded loosening the stress on income tax, provide tax holiday to businesses especially the manufacturing industries, and implement the recommendations of the HLERC. 

Published in The Rising Nepal daily on 20 November 2025.

Govt informs DTAA partners about scrapping 'treaty shopping'

Kathmandu, Nov. 12

The government has informed its partners in the Double Taxation Avoidance Agreement (DTAA) that it has introduced a material anti-abuse provision specifically targeting 'treaty shopping'

In a statement, the Inland Revenue Department (IRD) informed that the new provision is made to prevent the exploitation of treaty concessions by third-country residents or entities that solely seek tax advantages—a practice commonly referred to as 'treaty shopping'.

In international law, 'tax shopping' means a practice where an individual or a company, who is not a legal resident of a country which is party to a DTAA, indirectly gain from the agreement.

The IRD has formally notified seven countries that are key partners in Nepal's DTAA concerning the amendment to its domestic tax legislation. Nepal has signed DTAA with Norway, Thailand, Sri Lanka, Austria, Pakistan, China and South Korea,

According to the IRD, formal communication was sent to the authorities of the seven partner countries with whom Nepal concluded DTAAs prior to the enactment of the Income Tax Act (ITA) 2002.

"The central focus of the notification is the introduction of material anti-abuse provision which is designed to safeguard the integrity of DTAAs," read a statement issued by the IRD on Wednesday. It said that this anti-treaty shopping rule denies treaty entitlements, such as tax exemptions or reduced tax rates, to the entities where 50 per cent or more of the vested ownership is held by individuals or entities who are not resident of Nepal, or residents of both Nepal and the other contracting state for the purposes of the agreement.

The government said that the rationale behind this new provision is to reinforce the primary purpose of the DTAAs – to promote legitimate trade and investment between the contracting states. "The provision acts as a vital domestic mechanism to provent the unintended exploitation of treaty benefits and concessions by third-country residents of entities solely seeking tax advantages," read the statement.

It will maintain the integrity of bilateral tax agreements and ensure that they benefit only bonafide investors and taxpayers.

The government awaits acknowledgement from the respective treaty partners and remains open to collaborative engagement for any required clarifications.

Published in The Rising Nepal daily on 13 November 2025.          

Govt will achieve revenue target: DPM Paudel

Kathmandu, July 2

Deputy Prime Minister and Finance Minister Bishnu Prasad Paudel has said that the government would achieve revenue targets through measures such as expanding the tax net, curbing revenue leakage, adopting information technology, and enhancing the effectiveness of revenue administration.

Responding to queries raised by lawmakers in the National Assembly on Wednesday, DPM Paudel has affirmed the government’s commitment to achieving the revenue target set by the budget of the next Fiscal Year 2025/26 – Rs. 1,315 billion - against the expenditure estimates of Rs. 1,964 billion.

He clarified that the budget was prepared within a systematic framework rather than in an ad hoc or ritualistic manner.

According to him, the budget is evidence-based and will be implemented upon parliamentary approval.

DPM Paudel assured that the government remains vigilant to ensure the scope of public debt does not become unlimited, while focus would be maintained on productive and capital expenditure.

Stressing the importance of financial discipline, he noted the need for Nepal to be removed from the grey list and to intensify efforts against money laundering.

"Regarding taxation, the threshold on luxury tax has been removed. Discussions are ongoing about concerns raised by gold jewellery traders, expressing confidence that a shared conclusion would be reached through dialogue," he said.

The DPM maintained that the budget reflected the spirit of democracy and republicanism and incorporates feedback provided by parliamentarians during the budget formulation process.

Published in The Rising Nepal daily on 3 July 2025.   

FM Paudel stresses coordination to check revenue leakage

Kathmandu, Feb. 5

The Central Revenue Leakage Control Committee (CRLCC) has stressed the need for an enhanced coordination and collaboration among the stakeholders from the federal to local level to further control the revenue leakage.

Speaking at the meeting of the committee, Deputy Prime Minister and Finance Minister, Bishnu Prasad Paudel, who also serves as the CRLC's coordinator, said that there is a need to tightening control over potential smuggling routes, both around customs checkpoints and alternative ones.

According to a statement issued by the Ministry of Finance (MoF), he said that a responsible and proactive approach from all agencies could lead to significant success in curbing illegal trade. According to rough estimates from economists and concerned agencies, more than 40 per cent of import and exports happens through informal routes impacting revenue collection.

Finance Secretary, Dr. Ram Prasad Ghimire, emphasised for a uniform understanding among various agencies regarding imported and exported goods, their classification and usage. He stressed that all efforts should be based on factual data.

Likewise, Revenue Secretary, Dinesh Kumar Ghimire, said that regulating the source of production and imports would make it easier to control the illegal trade. He also expressed confidence that the commitments made by officials in the meeting would be effectively implemented.

Officials participating in the meeting acknowledged gradual improvements in tackling illegal exports and imports but emphasised the need for additional efforts to achieve meaningful results.

Enhanced border surveillance, stronger market monitoring and prioritising the use of technology for better enforcement are the major recommendations made at the meeting to curb the illegal trade.

The meeting was attended by officials from the Ministry of Finance, Office of the Prime Minister and Council of Ministers, Department of Revenue Investigation, Department of Customs, Inland Revenue Department, Department of Money Laundering Investigation, Nepal Police, Armed Police Force, and National Investigation Department, among others.

Earlier in August 2024, a meeting of the CRLCC had decided to meet the target of revenue collection for the current fiscal year by expanding tax-friendly services and controlling revenue leakage.

It has also decided to form a central rapid patrol team to check the leakage and deploy the team across the southern border. However, the meeting had expressed concerns about not causing any sorrow to the taxpayers conducting business according to the law.

DPM Paudel, then, had also instructed the concerned agencies to make surveillance more effective through the adoption of modern technology, make the classification and evaluation of imported goods realistic, encourage the act of taking and giving bills while purchasing goods or services and be ruthless in investigating the business setups promoting fake bills or firms.

Despite these efforts, revenue collection is yet to be satisfactory. According to the statistics published by the Financial Comptroller General Office, the government could mobilise only 41.48 per cent tax revenue by Tuesday, in almost seven months of the current Fiscal Year 2024/25.

Rs. 532.86 billion of the annual revenue target Rs. 1284.2 billion has been collected so far.

Meanwhile, the non-tax revenue has been impressive with 55.71 per cent achievement which is Rs. 75.25 billion of the annual target of Rs. 135.09 billion. 

 Published in The Rising Nepal daily on 6 February 2025.  

Revenue collection reaches Rs. 323. 24 billion in four months: Ministry

Kathmandu, Nov. 21

Revenue collection for the first four months of the current Fiscal Year 2024/25 has increased by about 17 per cent compared to the corresponding period last year.

According to data presented at a meeting of the Ministry of Finance (MoF)’s High-Level Management Committee, revenue collection stood at Rs. 276 billion during the same period in the last FY 2023/24.

 This year, it has reached Rs. 323.24 billion, the MoF said in a statement on Thursday.

The MoF said that in the last five years, the revenue collection against the target was highest in FY 2020/21 with 92.5 per cent achievement against the annual estimates of Rs. 1.011 trillion.

Likewise, it was 90.24 per cent of Rs. 1.18 trillion in FY 2021/22, 74.54 per cent of Rs. 1.422 trillion in 2023/24, and 71.38 per cent of Rs. 1.112 trillion in 2019/20.

In FY 2022/23, the revenue mobilisation remained the poorest in five years with just 68.23 per cent achievement of Rs. 1.403 trillion.

This year, the annual revenue target is Rs. 1.419 trillion, a 34 per cent increase compared to the actual revenue collected last year. “Of this, the target for the first four months was Rs. 406.37 billion. However, Rs. 323.24 billion has been collected, meeting approximately 80 per cent of the target and marking a 16.85 per cent increase compared to the same period last year,” the MoF said.

Speaking at the meeting, Deputy Prime Minister and Finance Minister Bishnu Prasad Paudel highlighted the importance of managing resources and expenditures effectively. He stressed the need to broaden the tax base, recover arrears, enhance the efficiency of tax administration, ensure ethical conduct among staff and coordinate across ministries.

He also noted the challenges posed by activities outside customs checkpoints and within tax administration.

DPM Paudel instructed to take strict legal action against those attempting to disrupt the tax collection system. Revenue Secretary Dinesh Kumar Ghimire emphasised the need for additional effort to meet the revenue targets.

The MoF stated that while revenue collection has increased compared to previous years, achieving the annual target requires strong coordination and cooperation among all stakeholders in tax administration, which remains a top priority of the ministry.

Director General of the Department of Customs, Harisharan Pudasaini and Director General of the Inland Revenue Department, Ram Prasad Acharya, also assured that they were working diligently to address challenges and seize opportunities to meet revenue collection targets.

Published in The Rising Nepal daily on 22 November 2024.  

FM Paudel directs revenue officials to intensify efforts to meet targes

Kathmandu, Nov. 5

Deputy Prime Minister and Finance Minister Bishnu Prasad Paudel has directed the officials of revenue administration to intensify efforts in revenue collection.

Addressing a meeting with ministry secretaries and departmental chiefs at the Ministry of Finance at the Singha Durbar on Tuesday, Minister Paudel instructed them to go beyond average performance and ensure their teams are fully engaged in achieving revenue targets.

Stressing that standard efforts would yield only ordinary results, Minister Paudel emphasised that a 13 per cent increase in revenue mobilisation compared to the same period last year was not sufficient, Ministry of Finance (MoF) informed in a statement.

The government has set a target to collect Rs. 1419.30 billion revenue in the current Fiscal Year 2024/25 and has collected 19 per cent (Rs. 280.16 billion) of it in the first three and a half months, according to the data published by the Financial Comptroller General Office (FCGO). Last year, the government was able to rack up Rs. 247.41 billion (17.39 per cent) in the same period against the target of Rs. 1422.54 billion.

As mentioned in the budget of this FY, tax and non-tax revenue targets are set at Rs. 1284.20 billion and Rs. 135.09 billion respectively while grants target was set up at 52.32 billion.

By Monday, total revenue mobilisation by the government stood at Rs. 285.88 billion against the total expenditure from treasury at Rs. 382.51 billion, creating a gap of about Rs. 97 billion between the income and expenses of the government which means the government needs to raise funds from borrowing.

Meanwhile, the capital expenditure has remained just 9.24 per cent (Rs. 32.56 billion) against the total allocation of Rs. 352.35 billion. However, this is better than the performance of the last FY 2023/24 – Rs. 267.96 billion of the annual allocation Rs. 302.07 billion.

Amidst such a situation, DPM Paudel said that revenue collection should be carried out in accordance with the constitution as well as laws and in the nation's best interest, addressing taxpayers’ concerns in line with legal provisions, and urged officials to be proactive.

Minister Paudel further directed officials to take immediate measures to address emerging challenges in revenue collection and enhance coordination among security personnel and other inter-agency teams to curb revenue leakage. He said that any lapses in revenue collection should be met with prompt action against those responsible, the MoF said.

In support of these efforts, DPM Paudel assured leadership's commitment to implementing policy, structural, and procedural reforms to improve the revenue collection system.

The meeting was attended, among others, by Finance Secretary Dr. Ram Prasad Ghimire, Revenue Secretary Dinesh Kumar Ghimire, Chief of the Revenue Management Division Uttar Kumar Khatri, Directors General of the Department of Customs Hari Sharan Pudasaini, and DG of Inland Revenue Department Ram Prasad Acharya.

 Published in The Rising Nepal daily on 6 November 2024. 

DPM Paudel for modernising tax administration

 Kathmandu, Sept. 13

Deputy Prime Minister and Minister for Finance Bishnu Prasad Paudel said that internal resource mobilisation will be made more effective to achieve the goal of development and prosperity of Nepal.

Speaking to the tax officers at a programme held after the inspection of the Internal Revenue Department (IRD) in the Capital on Friday, DPM Paudel said that the tax system will be further modernised in order to mobilize internal resources more effectively, reduce the tax participation cost of taxpayers, and prioritise the development of technology-friendly human resource.

He instructed the employees to work to expand the scope of taxes, create a taxpayer-friendly environment, increase the quality of taxpayer services, increase voluntary tax participation, and stop tax evasion and leakage.

Finance Minister Paudel said that he will also take more initiatives in institutional reforms to create result-based professional organisation with work specialization while emphasise would be given to simplifying the work process, risk-based tax audit and electronic governance.

Saying that the arrears and delinquencies in the big tax offices have increased, DPM Paudel has directed them to conduct a special campaign to clear the arrears.

Finance Secretary, Dr. Ram Prasad Ghimire, instructed the employees to understand their responsibilities and obligations.

Likewise, Revenue Secretary, Dinesh Kumar Ghimire, asked them to move forward by paying attention to the target of revenue mobilisation. The country has not been able to meet the annual revenue targets for the past several years with just about 64 per cent revenue target meeting in the last Fiscal Year 2023/24.

Director General of the IRD, Ram Prasad Acharya, expressed his commitment to fulfill the target of internal revenue collection this year which stands at Rs. 701 billion. Total revenue target for this fiscal is Rs. 1419.30 billion. 

Published in The Rising Nepal daily on 14 September 2024.

Tax collection below 80% in all bands

Kathmandu, Aug. 1

The government couldn't meet any of the revenue targets, except in education service fee, it set for the last Fiscal Year 2023/24.

Through the budget of last year, then Finance Minister Dr. Prakash Sharan Mahat had set the revenue target at Rs. 1422.54 billion but only Rs. 1082.74 billion (74.4 per cent of the annual estimate) could be collected.

According to the statistics of the Ministry of Finance (MoF), none of the tax components crossed 80 per cent of the annual target. However, the non-tax revenue was collected 97.6 per cent of the annual estimate. The government collected Rs. 114.24 billion non-tax revenue last year against the target of Rs. 117.06 billion.

The Value Added Tax (VAT) contributed highly to the state coffers with Rs. 310.45 billion mobilisation which is 72.9 per cent of the target. Among the taxes, collection of income tax remained the highest with 78.3 per cent collection of the Rs. 362.11 billion target.

With the decreased international trade, the customs duty registered the poorest performance with just 65.4 per cent of the target. The government had set the target of Rs. 307.43 billion customs duty for the last FY but only 201 billion could be collected.

 

Annual revenue target and actual collection

Revenue Type	Annual Target (Rs.)	Achievement (Rs.)	Per cent
Total revenue	1422.54 bn	1082.74 bn	76.1
Customs duty	307.43 bn	201.02 bn	65.4
VAT	425.89 bn	310.45 bn	72.9
Excise duty	207.22 bn	146.35 bn	70.6
Income Tax	362.11 bn	283.46 bn	78.3
Non-tax revenue	117.06 bn	114.24 bn	97.6

Source: Ministry of Finance (MoF)

Meanwhile, the government collected Rs. 450 million green tax which was not in the annual estimation.

Likewise, one of the best performing sectors was the 'road construction and maintenance fee' as there was collection of Rs. 4.31 billion against the target of Rs. 4.57 billion.

Meanwhile, the number of taxpayers, both individual and institutional, has gone up significantly in the past couple of years reaching 6.8 million by the end of the last Fiscal Year 2023/24.

More than 93 per cent of the total taxpayers' certificates issued are Permanent Account Numbers (PANs), according to the reports report published by the IRD, the tax administration body under the MoF.

By the end of the last FY 2023/24 (July 15), the IRD issued above 6.34 million PAN cards, of which 617,781 were issued last year.

Personal PAN dominates the all taxpayers' number with 4.26 million obtaining the tax registration. There were 3.65 million Personal PAN holders by the end of the previous FY 2022/23. Two years ago, PPAN holders' number was only 3.05 million.

Likewise, the number of Business PAN certificates has reached 1.99 million by mid-July this year against 1.87 million in the same period last year. About 80,430 Withholding PAN have been issued so far.

Similarly, taxpayers registered with the Value Added Tax (VAT) and excise duty has reached 334,983 and 125,081 respectively.

On the year-on-year basis, there was an increase of 786,343 in PAN holders last year.

Published in The Rising Nepal daily on 2 August 2024.        

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.        

CG-run companies pay Rs. 16.4 bn tax last year

 Kathmandu, Jan. 14

Companies running under the Chaudhary Group (CG) have collectively paid Rs. 16.14 billion in tax to the government in the last Fiscal Year 2022/23 which is 1.87 per cent of the total revenue collected by the government.

Issuing a statement on Sunday, the group claimed that this is the highest revenue any business group paid to the government in a year.

It also said that the contribution to the national revenue decreased in the last fiscal compared to the FY 2021/22 due to economic slowdown. Two years ago, the CG had paid Rs. 17.72 billion in taxes.

"The fact that the Chaudhary Group is able to pay high taxes even when the overall economy of the country is going through a recession and the total revenue of the government has shrunk has encouraged us. We are happy to make a significant contribution to the expansion of the national economy and the development of the nation," said Binod Chaudhary, Chairman of CG.

He also said that the Group is expanding its investment in Nepal at a rapid pace. "We believe that it will make a meaningful contribution to the national economy," he said.

Chaudhary who is also a lawmaker stressed that only by encouraging investors and improving the investment environment in Nepal, it is possible to widen the scope of revenue, so everyone's attention should be paid to this.

The group also said that it had paid Rs. 70 billion in taxes to the government in the last five fiscal years.

Likewise, Nirvana Chaudhary, Managing Director of the Group, said that the CG is expanding its investment by keeping Nepal as its main priority. "We are rapidly expanding investments in food and beverages, hospitality, financial sector, automobiles, education, infrastructure and new technology. We want to make an effective contribution to the overall economy of Nepal."

Although there is no practice of calculating and encouraging the contribution of business groups to the government's revenue in Nepal, Chaudhary Group has been making public the contribution of its group to the revenue every year, read the statement. 

 Published in The Rising Nepal daily on 15 January 2024.   

CNI honours high taxpayers

 Kathmandu, Dec. 3

The Confederation of Nepalese Industries (CNI) has honoured the high tax paying businesses and individuals in the Fiscal Year 2021/22 that were honoured by the Inland Revenue Department last week on the occasion of National Tax Day 2080.

Rajesh Kumar Agrawal, President of CNI, honoured the high tax payers at a programme organised at the CNI Secretariat on Sunday.

The government had honored 16 institutions and individuals as high tax payers.

Among the awardees, two are government-run companies and 14 are from the private and public sectors. The CNI honoured 14 high tax payers in the private and public sectors. 11 out of the 14 are members of CNI, it said in a statement on Sunday.

Dabur Nepal Pvt. Ltd. is the highest tax payer from export business in the FY 2021/22, Asian Paints Pvt. Ltd. is the highest tax payer from special industries, and OCB Foods and Feeds Pvt Ltd from agriculture and livestock industry sector.

Similarly, Chhimek Laghubitta Financial Institution Ltd., Global IME Bank Limited, Life Insurance Corporation (Nepal) Ltd., Nobel Medical College Teaching Hospital Pvt. Ltd., and Mankamana Darshan Pvt. Ltd. were honoured as the highest tax payers from their respective sectors.

Likewise, Bhatbhateni Supermarket and Departmental Stores Pvt. Ltd., Bhotekoshi Power Company Pvt. Ltd. and IME Limited were other business that received the honour as the highest tax payers. From individual category, Bijay Kumar Shah topped the rank while Surya Nepal Pvt Ltd was the one that paid the highest total internal revenue and filed the highest value added tax.

Agrawal said that being a high tax payer is not only a personal and institutional achievement but also an important contribution to the country.

He said that the confederation is proud that about 70 per cent of the highest tax payers from the private sector are CNI members. He also expressed his best wishes for this success in the coming year as well.

Published in The Rising Nepal daily on  4 December 2023. 

Surya Nepal, Bijaya Shah become highest tax payers

Kathmandu, Nov. 23

Surya Nepal is honoured by the government for paying the highest amount of tax in the last Fiscal Year 2022/23.

Finance Minister Dr. Prakash Sharan Mahat honoured the company at programme organised by the Inland Revenue Department (IRD) on the occasion of the National Tax Day 2080 on Thursday morning in Kathmandu.

Surya Nepal has topped the list of high tax payers in two different categories. It has also been recognised as the one that filed the taxes on time.

Bijaya Bahadur Shah has become the highest tax paying person in the country.

Nepal Telecommunication Company (NTC) Limited has become the company to pay the highest income tax while Dabur Nepal Pvt. Ltd. has been awarded for exporting goods of largest amount among the Nepali exporters.

Likewise, from special industries category, Asian Paints has filed the largest amount of taxes, and from the banking sector, Global IME Bank topped the list.

The IRD awarded the highest tax payers OCB Feeds Pvt. Ltd. from agriculture and livestock, Chhimek Laghubitta from microfinance, Life Insurance Corporation Nepal from insurance, Nobel Medical College Teaching Hospital from health and education, Manakamana Darshan Pvt. Ltd. from tourism, Bhatbhateni Supermarket from goods trading, Nepal Stock Exchange from mid-scale tax payers, Bhotekoshi Power Company from energy, and IME Limited from remittance.

Addressing the programme, FM Dr. Mahat said that the flexible monetary policy adopted by the Nepal Rastra Bank (NRB) has caused some discomfort in the economy by increasing flow of loans in unproductive sectors.

According to him, the expansionary monetary policy increased the transactions in real estate and stock market as the bank loan was available in lower rate, and it is now having repercussions on the economy. 

He claimed that the short-sighted policies of the government and the NRB have increased investment in unproductive sectors such as land, houses, vehicles, view towers, stock market and crypto currencies.

"There is laxity in the economy of the world, and we also experienced that laxity which was created due to the internal and external reasons," he said while maintaining that the economy is now moving in a positive direction and the government is encouraging investments and promoting job creation, production growth and use of green energy.

Instructing the employees of the tax administration not to cause trouble to the taxpayers under any pretext, he asked the IRD to make arrangements to honour the best taxpayers in the small and medium enterprise sectors.

Acting Director General of the Department, Arjun Prasad Bhattarai, said that the scope of revenue has been expanded, and by the end of the last Fiscal Year 2022/23, 1.876 million business permanent account numbers and 3.649 million personal permanent account numbers have been issued. The total number of registered tax payers has crossed 5.554 million.

President of the Federation of Nepalese Chambers of Commerce and Industry, Chandra Prasad Dhakal said that the central bank and the government should join hands to improve the current situation in the economy. He said that increasing bad loans in banks and financial institutions have added to the worries of banks.

Dhakal also urged the NRB to announce special financial instrument for the small and medium enterprises without disturbing the current system. 

  Published in The Rising Nepal on 24 November 2023.