MoF Forms Two Rapid Inspection Teams to Combat Revenue Leakages

September 2, 2024, 06:13:14 PM |

KATHMANDU: In a decisive move to address revenue leakages, the Ministry of Finance (MoF) has announced the formation of two rapid inspection teams. These teams will focus on curbing illegal trade and ensuring effective revenue collection, particularly along the major highways of Nepal.

According to the MoF, the first team will be led by the deputy director general of the Inland Revenue Department and will be deployed in the eastern segment of the East-West Highway, covering the stretch between Chitwan and Mechi. The second team, led by the deputy director general of the Department of Customs, will patrol the western section of the highway, connecting Chitwan through Mahakali.

This initiative comes as the government faces increasing pressure due to declining revenue collection. In the fiscal year 2022/23, revenue collection reached only 68.21 percent of the targeted Rs 1.403 trillion, a drop from the 74.29 percent of the Rs 1.472 trillion target in the previous fiscal year.

Customs revenue plays a significant role in the government’s overall revenue, contributing approximately 40 percent in the last fiscal year. However, the government has struggled to control illegal trade, particularly across the open border with India, a situation that has worsened in the post-COVID-19 period.

A study by the Federation of the Nepalese Chambers of Commerce and Industry (FNCCI) identified smuggling through the open border as a major factor behind the slow revenue collection. This issue was further highlighted in the MoF’s 100-day work plan, which included the mobilization of rapid inspection teams as a key measure to tackle the problem.

Mahesh Bhattarai, spokesperson for the MoF, emphasized that the newly formed teams will work in close coordination with other government bodies to efficiently monitor and control the illegal transactions of imported goods. The government’s decision to act on this front is seen as a crucial step toward improving revenue collection and enhancing the country’s economic stability.

Fiscal Nepal |

Monday September 2, 2024, 06:13:14 PM |