Finance Minister Prakash Saran Mahat has directed the Department of Customs (DoC) to submit the latest progress report on import and export at each customs point across the country. Addressing the Customs Management Seminar organized by the Department of Customs on Monday, Mahat sought reasons from the department for the low revenue collection from customs points. Mahat asked the director general of DoC to submit the actual data to the ministry to find out if revenue collection slumped due to a decline in the import of goods or smuggling. Stating that revenue leakage in the customs points including the Tribhuvan International Airport has become rampant, the finance minister asked high officials of DoC to consider the issues seriously. According to Mahat, serious discussions have been held also with law enforcement agencies to control the leakage of revenue. He urged the customs officials to monitor it in coordination with the security agencies. "Revenue collection has dropped in many customs points. There is news of revenue leakage from these points. The same is the case at Bhairahawa, Birgunj, and Rasuwa custom points," he said.

The decline in imports has hit the government's revenue collection hard. According to DoC, revenue from imports has declined by 25 percent in the eight months of the current fiscal year compared to the same period of the last fiscal year. DoC collected revenue worth Rs 250.64bn till mid-March, which was Rs 333bn a year ago.

The country's total imports have declined by 18 percent in the review period. Nepal has imported goods worth Rs 1,057bn in the eight months of FY 2022/23 compared to Rs 1,308bn during the same period of FY 2021/22. With the domestic economic activities also decreasing, the government's inland revenue collection has also suffered along with import-based revenue. The Inland Revenue Department (IRD) has been able to achieve about 80 percent of the revenue collection target in the first eight months of the current fiscal year. The department had set a target of raising Rs 353.91bn by mid-March, 2023. However, it succeeded in raising only Rs 281.99bn which is 79.67 percent of the target. According to IRD, income tax collection stood at Rs 117.07bn against the target of Rs 158.25bn. The department collected Value Added Tax (VAT) worth Rs 68.77bn against the target of 82.43bn. The revenue collection from excise duty is also below the target. The department has collected excise duty worth Rs 64.81bn against the target of Rs 76.82bn. The department also missed the target for house rent tax and health service tax. The education tax is the only heading in which the IRD has managed to meet the target.