Kathmandu: The Inland Revenue Office (IRO), Birgunj, has recorded a remarkable performance in the last fiscal year, exceeding its annual revenue collection target and marking a 35.57% growth compared to the previous year.

Revenue Collection Exceeds Target
According to Chief Tax Officer Tika Raj Chaulagain, the office collected a total of Rs 9.45 billion 9.5 million 7 thousand in revenue in the fiscal year 2080/81. This figure is Rs 2.58 billion higher than the amount collected in the previous fiscal year, signaling a strong upward trend.

The Inland Revenue Department had set a target of Rs 8.71 billion 8.2 million, which the office exceeded by achieving 109% of the target, earning it an ‘A Plus’ performance rating.

In contrast, during the previous fiscal year (2079/80), the revenue target had been Rs 9.41 billion 9.7 million, but the office had only managed to collect Rs 6.87 billion, achieving just 72.93% of the goal.

Reasons Behind the Success
Chief Tax Officer Chaulagain attributed this achievement to enhanced enforcement measures, including:

-Freezing of bank accounts, property, and import-export rights of non-compliant taxpayers.

-Expansion of market monitoring.

-Intensive taxpayer education and awareness campaigns.

These steps, particularly the focus on clearing arrears in the month of Chaitra, played a crucial role in the improved collection performance, he noted.

Breakdown of Revenue Sources
The office witnessed growth in major revenue categories:

-Excise tax collection stood at Rs 4.137 billion, surpassing the target of Rs 3.957 billion.

-Income tax collection reached Rs 3.101 billion, against the target of Rs 2.899 billion.

However, the Value Added Tax (VAT) collection fell short. The target was Rs 2.588 billion, but only Rs 2.129 billion was collected. Chaulagain explained that the shortfall was due to the transfer of 15 major taxpayers to large and medium taxpayer offices, which reduced the VAT revenue base for Birgunj IRO.

Looking Ahead
The success of the Birgunj Inland Revenue Office serves as a model for improved fiscal discipline and proactive tax enforcement. It highlights the potential for revenue growth through strategic monitoring, legal enforcement, and taxpayer engagement, even in challenging economic environments.