Govt implements special action plan to recover unpaid taxes: DPM Paudel

KATHMANDU: Deputy Prime Minister and Minister for Finance Bishnu Prasad Paudel says the government will implement a special action plan, including a campaign to recover unpaid taxes, in the current fiscal year to meet revenue collection targets.

Responding to MPs at a House of Representatives session today, Paudel said the government has introduced comprehensive policies and programmes to accelerate revenue mobilisation and prevent money laundering.

In response to MP Surya Prasad Gautam, he added that total revenue collection last year amounted to Rs 1,196 billion, an 11.33% rise compared with the previous year. “The government has set an even higher target for the current fiscal year.”

To achieve this, an internal revenue mobilisation strategy has been implemented. The Ministry of Finance is regularly reviewing collections and is prepared to launch an action plan aimed at recovering tax arrears.

Minister Paudel also stated that a corrective tax approach has been introduced through this year’s budget. Measures include adjustments to tax rates, expansion of the tax base, promotion of compliance and effective operation of the digital tax system.

“The government is fully committed to enhancing the efficiency and capacity of overall revenue administration,” he assured.

During the session, MP Prem Suwal questioned Nepal’s status on the Financial Action Task Force grey list. Paudel said the government has taken significant steps, including amendments to 19 laws, to secure Nepal’s removal from the list.

New rules and directives have been issued, and the enforcement of the Money Laundering Prevention Regulation, 2081 (2024), and the Rapid Economic Implementation Action Plan, 2082 (2025), form part of the government’s response to FATF concerns.

Further directives have been issued to dealers of precious metals and stones, casino operators and real estate businesses to improve transparency and accountability in the financial system.

He added that four coordination mechanisms for regulation, investigation, counter-terrorism and implementation facilitation reflect the government’s seriousness in meeting FATF standards.

“We are not only committed to exiting the FATF grey list but also to ensuring that Nepal does not fall into such a situation again in the future,” the minister affirmed.

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