Fiscal Nepal
First Business News Portal in English from Nepal
swarnim wagle sudan gurung
KATHMANDU: The Government of Nepal has announced a zero-tolerance policy against revenue leakage, pledging to launch a nationwide enforcement campaign aimed at curbing tax evasion, smuggling, and illegal trade that continue to undermine fiscal stability.
The decision was made during a meeting of the Central Revenue Leakage Control Committee held Thursday at the Ministry of Finance. The high-level meeting reviewed ongoing enforcement efforts and outlined a more aggressive, results-driven approach to revenue administration.
Finance Minister Dr. Swarnim Wagle and Home Minister Sudhan Gurung jointly instructed all concerned agencies to adopt a “zero tolerance” stance in tackling revenue leakage across the country.
According to Ministry spokesperson Tank Prasad Pandey, the ministers emphasized the need for enhanced border surveillance, tighter monitoring of supply chains, and intensified market inspections to detect and prevent illegal economic activities.
“Both the Finance Minister and Home Minister have clearly directed all agencies to operate under a zero-tolerance framework. Border areas will be placed under strict surveillance, and all forms of revenue leakage—whether at entry points or within domestic markets—will be controlled more effectively,” Pandey stated.
The meeting also decided to form a dedicated task force to implement a structured action plan with measurable outcomes. Authorities have been instructed to demonstrate visible progress before the next meeting, signaling a shift toward accountability-driven governance.
Senior officials from key revenue-related departments presented updates on current enforcement measures, while chiefs of major security agencies—including Nepal Police and Armed Police Force Nepal—were present, highlighting the government’s intent to strengthen inter-agency coordination.
The government aims to operationalize the campaign model to ensure sustained enforcement rather than isolated interventions. Officials indicated that decisions taken during the meeting will be formally communicated to all relevant agencies for immediate implementation.
With revenue collection under pressure and fiscal targets becoming increasingly challenging, the government’s shift toward a zero-tolerance enforcement regime is expected to play a critical role in strengthening Nepal’s public finance system, improving compliance, and restoring discipline across formal and informal economic sectors.
The move is being closely watched by businesses, investors, and development partners as Nepal attempts to align its revenue administration practices with global standards while addressing systemic leakages in customs, taxation, and domestic markets.
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