KATHMANDU, Jan 26: Finance Minister Dr Prakash Saran Mahat has admitted that the government has not met its revenue target for the current fiscal year. He said this while addressing a program organized in Kathmandu today on the occasion of International Customs Day.
During his address, Dr Mahat acknowledged that the government is facing significant pressure in terms of revenue. Minister Mahat admitted that although there has been a slight increase in revenue, it has not reached the set target.
"Now we are facing more pressure from a revenue perspective. While there has been a slight increase, we have not achieved the target we had set," stated Dr Mahat.
He talked about the reason for the change of the revenue structure, about why revenue has not risen as per the target. Dr Mahat also said that not all types of businesses can be effectively managed unless they are transitioned into an online system.
He mentioned that it is necessary for the Inland Revenue Department and Department of Customs to adopt technology-friendly practices.
The Finance Minister mentioned that the customs revenue is impacted by the higher import of electric vehicles compared to fuel-driven vehicles. He stated that customs revenue is Rs 34 billion to Rs 35 billion less in the latest figures due to the lower customs duties on electric vehicles compared to traditional fuel-based vehicles.
Dr Mahat explained, "We used to import vehicles in Nepal based on fuel, using petrol and diesel. However, in recent times, the import of electric vehicles has doubled compared to gasoline-based vehicles. Because of the lower duty rates on electric vehicles, there is a shortfall of Rs 34/35 billion in customs revenue in the latest figures."
He said that the government's revenue growth estimates were impacted by the shift in vehicle import preferences and the promotion of electric vehicles, making it more challenging to achieve the revenue target.