The Customs Department and Inland Revenue Department are the two major revenue collectors of the federal government. However, both agencies have been continuously collecting revenue below the targets this fiscal.
The DoC has collected Rs 344.03bn in revenue till mid-June which is a decline of Rs 102.76bn compared to the same period of the last fiscal. The department had collected Rs 446.79bn in revenue during the first 11 months of the last fiscal year. With the country going through a deeper economic downturn, the demand for goods and services in the market has dwindled as consumers continue to bear the brunt of the slowdown. The imports of high-duty goods such as vehicles have decreased significantly which has affected the revenue of the government. Due to the lack of demand in the market and the low availability of auto loans from banks, automobile dealers are yet to get around 3,000 four-wheelers cleared from various customs yards across the country. The vehicles have been parked at the yards for months, according to the DoC official. The country’s overall imports in this fiscal have dipped by 16 percent. Nepal has imported goods worth Rs 1480.98bn in the first 11 months of this fiscal compared to Rs 1763.22bn during the same period of the last fiscal. The federal government relies on customs revenue heavily. Of the total revenue, the customs revenue accounts for almost 45 percent.
