Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: The government has constituted a 12-member Revenue Advisory Committee to provide policy and structural recommendations for the formulation of the upcoming fiscal year 2026/27 (FY 2083/84 BS) national budget.
Finance Minister Rameshwar Prasad Khanal formed the committee under the coordination of Revenue Secretary Bhupal Baral, according to the Ministry of Finance.
Mandate: Tax Reform, Revenue Administration Overhaul
The committee has been tasked with submitting comprehensive recommendations on:
Policy and legal reforms related to taxes imposed under the Economic Act
Review of tax and non-tax revenue rates
Structural reforms in Nepal’s tax system
Improvements in overall revenue administration and organizational restructuring
The panel will also examine customs tariff revisions, valuation systems, customs administration reform, and border management mechanisms.
In addition, it will propose measures to identify new non-tax revenue areas, revise existing rates, and address overlapping taxation issues among federal, provincial, and local governments.
Inter-Governmental Revenue Management Focus
According to the Ministry of Finance, the committee will also analyze:
Intergovernmental tax system management
Revenue sharing arrangements
Structural bottlenecks affecting fiscal federalism
Practical solutions to improve coordination between tiers of government
Representatives from Nepal Rastra Bank, private sector institutions, and other stakeholders are included in the committee to ensure broader consultation and evidence-based fiscal policy input.
Nine Thematic Sub-Committees Formed
To streamline technical evaluation, nine sub-committees have been established under the main committee:
Internal Revenue Sub-Committee
Customs Sub-Committee
Revenue Leakage Control and Investigation Sub-Committee
Industry, Commerce, Investment, and Export Promotion Sub-Committee
Agriculture, Energy, and Tourism Sub-Committee
Banking, Financial Institutions, Insurance, Cooperatives, and Capital Market Sub-Committee
Non-Tax and Intergovernmental Revenue Management Sub-Committee
Macroeconomic Sub-Committee
Anti-Money Laundering Prevention and Investigation Sub-Committee
Reporting Timeline
The sub-committees are required to submit their recommendations to the main committee by the end of Chaitra (mid-April 2026). The consolidated report will then be presented to the Finance Minister in Baisakh (late April–May 2026), ahead of the formal budget presentation.
The formation of the committee comes at a time when Nepal faces revenue shortfalls, structural tax inefficiencies, customs valuation concerns, and growing pressure to rationalize fiscal federalism. The upcoming budget is expected to focus heavily on tax reform, revenue mobilization, investment climate improvement, and macroeconomic stability.
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