Government to Scrap Revenue Investigation Department, Move to Faceless Tax Administration

Kathmandu — Finance Minister Dr. Swarnim Wagle has announced various plans for the modernisation, transparency, and simplification of revenue administration through the budget.

Wagle said the Revenue Investigation Department will be scrapped, and arrangements will be made for the work it has been carrying out to be performed through the relevant subject-specific agencies.

The Finance Minister said all businesses with annual transactions above Rs 100 million that issue electronic invoices will be mandatorily linked to the Central Billing Monitoring System. He said small businesses will be encouraged to accept payments through electronic means.

He said the tax audit period has been set at three years. An e-assessment system with artificial intelligence will be developed for risk-based tax investigation and audit.

Wagle said arrangements have been made to introduce digital excise stamps. To control excise duty leakage, an electronic track-and-trace system will be introduced. He said excise administration based on physical control will gradually be transformed into a self-removal system on the basis of risk.

The Finance Minister said a paperless, faceless, and contactless revenue administration will be developed. He said services such as filing tax returns, making payments, and claiming refunds will be arranged to flow automatically.

He said a performance indicator-based incentive allowance will be arranged in the revenue administration to raise staff morale and increase revenue mobilisation.

Wagle said multiple taxes — such as export and scrap fees — levied by more than one local government when transporting goods from one place to another will no longer be allowed. He said arrangements will be made to require a Permanent Account Number (PAN) when paying provincial and local taxes.