Government Begins Budget Preparation Process, Forms Revenue Advisory Committee

Kathmandu — The Ministry of Finance has formally initiated preparations for the upcoming fiscal year’s national budget by forming a Revenue Advisory Committee in accordance with the scheduled budget formulation process.

According to Ministry spokesperson Tank Prasad Pandey, the committee was established following a decision made by Finance Minister Rameshwar Prasad Khanal on Magh 28. The committee, coordinated by the Revenue Secretary of the Ministry of Finance, has already begun its work.

The committee has been tasked with providing policy recommendations to the government regarding the overall economic situation and key issues that should be incorporated into the upcoming budget. It will advise on reforms related to income tax, value-added tax (VAT), excise duties, education service fees, digital service taxes, e-commerce taxation, and other internal revenue policies governed by existing financial legislation.

The Ministry stated that the committee will also review tax and non-tax revenue rates, recommend measures for simplifying administrative procedures, and propose reforms to strengthen the overall tax system, revenue administration, and organizational structure.

In addition, the committee will suggest policy and legal reforms aimed at promoting industrial development, trade expansion, import–export management, service-sector growth, supply chain efficiency, and investment promotion. Recommendations related to tax and non-tax incentives to support economic activities will also form part of its mandate.

Customs policy reform has been identified as another major focus area. The committee will review customs duty structures, assess the need for protecting domestic industries through tariff adjustments, and recommend improvements in valuation systems, trade facilitation procedures, border management, and customs administration frameworks.

The committee is further responsible for providing recommendations on controlling revenue leakage, strengthening anti–money laundering investigations, regulating foreign exchange transactions, and improving legal and institutional mechanisms to combat economic crimes.

Sectoral reforms covering agriculture commercialization, energy and electricity development, tourism promotion, civil aviation, and natural resource management will also be examined. The committee will additionally analyze challenges faced by banks and financial institutions, insurance companies, capital markets, cooperatives, real estate transactions, and broader economic policy implementation.

Another key responsibility includes identifying potential areas for non-tax revenue generation, reviewing revenue-sharing arrangements among federal, provincial, and local governments, and addressing issues of overlapping taxation within Nepal’s intergovernmental fiscal system.

Following its first meeting, the committee has invited suggestions from government agencies, private-sector organizations, academic institutions, stakeholders, and the general public. Subcommittees formed under the advisory body are expected to submit their recommendations by the end of Chaitra, while the main committee will present its final report with policy recommendations to the Finance Minister by the end of Baisakh 2083 (Nepali calendar).