The government granted nearly Rs 80 billion in customs exemptions to businessmen in a single fiscal year, according to the 62nd report of the Office of the Auditor General.

The recent report states that customs revenue exemptions totaling Rs 79.87 billion were provided in Fiscal Year 2023/24 (2080/81) through the Economic Act. The Office of the Auditor General raised concerns over the scale of the exemptions and questioned the government's transparency.

The report also pointed out that the government has not maintained records of the internal revenue exemptions granted under the Economic Act. While the Ministry of Finance or the Department of Inland Revenue should have documented this data, no such records were found.

Additionally, the report revealed that customs duty and value-added tax (VAT) exemptions totaling Rs 4.87 billion and Rs 8.8 million respectively were granted on imports made under the SAFTA (South Asian Free Trade Area) facility.

The Auditor General reminded the government of existing provisions that require a master list to be approved before any project invites bids, and that goods imported under such exemptions must be monitored to ensure they are used for the intended projects.

As the scope of revenue exemptions continues to grow, the Auditor General has recommended that the government conduct an in-depth analysis and submit consolidated data to Parliament.