May 22: The customs offices of Birgunj – the main border point for Nepal’s foreign trade – have failed to collect customs duty in accordance to their target in the first 10 months of the current fiscal year.
Officials at the Customs Department of Birgunj claim that although the revenue collection has increased in comparison to the corresponding period of last FY, the customs offices have failed to meet their target due to the decline in import of goods.
The customs offices of Birgunj have collected Rs 122.70 billion in the first ten months of the current FY, which is 12 percent less than its target. The Ministry of Finance had instructed the Birgunj customs point to collect Rs 139 billion revenue from customs duty this year. The target was 27 percent more than that of the previous year.
Information Officer at the Department of Customs, Birgunj Manish Kumar Mahato informed New Business Age that the overall revenue collection has been affected due to the comparatively low import of vehicles and petroleum products, which are considered the major source of revenue for the government.
The revenue collection from the import of vehicles has deceased by 5 percent and that form the import of petroleum products has dropped 22 percent, according to the customs department. Customs officials argue that the ineffective capital expenditure of the government, liquidity crunch in the banking sector, decline in import of construction materials among others have had a negative impact on revenue collection.