KATHMANDU: The government is yet to recover tax dues amounting to Rs 275 billion from 330,912 taxpayers up to fiscal year 2024/25, according to the latest annual progress report of the Inland Revenue Department (IRD) released on Monday.
Of the total outstanding amount, Rs 94.95 billion remains unpaid from regular taxpayers, while Rs 180.10 billion is pending under administrative review involving 2,095 taxpayers, the report states.
Income tax accounts for the largest share of dues. A total of 193,620 taxpayers owe Rs 219.11 billion in income tax alone. Likewise, 137,253 taxpayers have yet to clear Rs 48.70 billion in Value Added Tax (VAT), while 364 taxpayers owe Rs 4.09 billion in excise duty. Another 1,770 taxpayers collectively owe Rs 3.15 billion under other categories.
The IRD’s performance in achieving last fiscal year’s recovery targets has also been lower than expected.
The department had set a target of collecting Rs 22.76 billion in income-tax arrears, but managed to recover only Rs 8.71 billion, achieving 38.29% of the goal.
In VAT arrears, the target was Rs 16.33 billion, against which Rs 10.33 billion, or 63.28%, was collected.
In tax adjustment, the IRD aimed to adjust Rs 27.38 billion in income tax dues, achieving Rs 21.39 billion, or 78.1% of the target. In VAT adjustment, however, performance exceeded the annual goal: against a target of Rs 18.17 billion, the department recorded Rs 22.29 billion, achieving 122.63% progress.
The report highlights persistent challenges in tax recovery and administrative review, indicating the need for stronger enforcement and improved compliance mechanisms.
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