Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: Nepal’s tax base expanded significantly in the first half of the current fiscal year, with 379,212 new taxpayers added between Shrawan and Poush of FY 2082/83 (mid-July 2025 to mid-January 2026), according to data released by the Ministry of Finance.
The surge signals widening formalization of the economy, growth in business registration, and stronger compliance within Nepal’s tax administration system.
The latest figures show that expansion was driven primarily by PAN (Permanent Account Number) registrations, which remain the backbone of Nepal’s income tax and business taxation structure.
Breakdown of New Registrations
During the six-month review period, new taxpayer registrations were recorded as follows:
Business PAN: 55,242
Personal PAN: 304,890
W-PAN: 871
VAT (Value Added Tax): 13,257
Excise Duty Registrations: 4,952
The increase in VAT registrations is particularly notable, as it typically reflects business expansion, higher transaction formalization, and growth in taxable commercial activities within Nepal’s economy.
Total Registered Taxpayer Base
With the latest additions, Nepal’s cumulative taxpayer database has reached:
PAN registrations: 7,360,353
VAT-registered taxpayers: 364,992
Excise-registered taxpayers: 129,949
The steady rise in taxpayer enrollment aligns with the government’s broader fiscal reform agenda, digital tax administration drive, and efforts to improve revenue mobilization amid ongoing economic restructuring.
Authorities have been focusing on broadening the tax net, enhancing compliance monitoring, and integrating informal economic activities into the formal tax system.
The growth trend is seen as critical for Nepal’s public finance sustainability, capital expenditure planning, and reduction of revenue leakage, especially at a time when the government is under pressure to strengthen domestic revenue sources and manage fiscal deficits.
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