There Is Pressure On Revenue Collection, Let’s Work To Meet The Target: Finance Minister Paudel

Kathmandu, Jan 26: Deputy Prime Minister and Finance Minister, Bishnu Prasad Paudel, has said that the current fiscal year revenue target has not been met although some improvement was seen in the government's revenue collection compared to the previous year.

Addressing a programme organized by the Department of Customs on the occasion of the International Customs Day here today, he urged the customs and the tax administration to carry out works with efficiency as there is pressure to meet the annual revenue collection target.

"Right now, we are under pressure in terms of revenue target. Although there is slight increase compared to last year, it is not satisfactory according to the target set for this year. We have to work to meet the target set for this year," said Finance Minister Paudel.

He said that the government has brought some laws through an ordinance to improve public service delivery, boost the morale of the private sector and create an investment-friendly environment, and the private sector too has welcomed the government's this step.

Finance Minister Paudel also made it clear that the government was making continuous efforts for the economic development and prosperity of the country.

"This is not the last step taken by the government to solve the problems seen in the economy, in production-productivity and economic growth. We will continue to take more such steps. The government has succeeded in removing the frustration and slowdown that was in the economy at the time of the formation of this government. The government is directed towards turning despair into hope and giving dynamism to the economy. Let us all work with this spirit," he emphasized.

Finance Minister Paudel also stressed on enhancing cooperation and coordination between the customs offices and the security bodies.

"Coordination between the security mechanism and the customs administration is necessary to collect revenue as per the target. The government will evaluate the work done by you on the basis of results," said Finance Minister Paudel.

Revenue Secretary Dinesh Kumar Ghimire said the government was serious about increasing the use of technology for improving customs administration and making the customs checking process easier.

"We are serious about enhancing the efficiency of the customs administration. In order to reduce the discretionary powers of the employees, there is a need to increase efficiency and emphasize on the use of technology. For this, the Ministry is thinking of moving forward using 'blockchain' technology in the customs checking," he said adding that internal homework is also being done on how to advance the integrated customs system and the provision related to the reference price list.

The Revenue Secretary also said that efforts are being made to further modernize the customs with the adoption of technology.

Director General of Customs Department Harisharan Pudasaini said that the department is making maximum efforts to collect revenue as per the annual target.

"We are aware of using advanced technology to streamline customs administration, facilitate trade and reduce costs, and provide international level services," Director General Pudasaini said.

In the event, FNCCI President Chandra Prasad Dhakal said that the customs administration should be made private sector friendly and customer friendly. Dhakal suggested that procedural difficulties should be removed during the customs inspection, employees' exercise rights should be removed, emphasis should be placed on the use of technology, etc.

"When the economy is running, the revenue will increase by itself, so the government should emphasize on promoting clean and competitive business, he said. As customs rates are high, smuggling through open borders has increased. This has also affected the revenue", Dhakal said, "The private sector has been giving suggestions such as using the latest equipment for inspection, reducing the time limit of inspection, passing inspection based on the transaction value and removing the reference price book.

Kamlesh Kumar Agrawal, President of Nepal Chamber of Commerce, said that there is a need for policy and practical reform of customs administration.
According to the international practice, Harmonized Code (HS Code) should be made of 10 digits and he pointed out the need to build a well-equipped 'quarantine lab' in all customs offices.

President of Nepal Overseas Exporters and Importers Association, Shiv Kumar Agarwal, pointed out the need for cooperation between the government and the private sector for trade facilitation. He emphasized that the interest of the private sector should be addressed in the Customs Bill under consideration in the Parliament and that the Association should be represented in the Revenue Advisory Committee.

On the occasion of the International Customs Day, the department has implemented the notification letter with QR code and EXIM code system. Similarly, the department has released a collection of customs souvenirs and circulars.