Nepal’s Revenue Hits NPR 747B by Mid-February | Nepal Revenue 2026 - Nepinsights

Nepal Government collects NPR 747.28B in 8 months of 2082/83, with NPR 82.25B revenue in Falgun alone. Nepinsights analyzes VAT, customs, excise, and overall nepal government revenue performance.

Nepal’s Revenue Hits NPR 747B by Mid-February | Nepal Revenue 2026 - Nepinsights

The government of Nepal has successfully gathered NPR 747.28 billion in revenue during the first eight months of the fiscal year 2082/83, reflecting a 3.75% increase compared to the same timeframe last year, as reported by the Ministry of Finance. For the month of Falgun, the revenue accumulated reached NPR 82.25 billion.

The government had set a goal of NPR 910.20 billion to be achieved by the end of Falgun, indicating that only 82.10% of this goal has been met to date. Overall growth is positive, though there are various key sectors that display mixed results.

Nepal Government Revenue Collection – First 8 Months of 2082/83

Revenue Source	Collected (NPR Billion)	Target (NPR Billion)	YoY Change (%)	Notes / Details
Total Revenue	747.28	910.20	3.75%	82.10% of target achieved
Falgun Month Revenue	82.25	–	–	Highest single-month collection
Customs Duty	144.50	195.90	8.12%	Imports +8.04%, Exports +225.65%
VAT	225.53	246.43	7.35%	Collection from production, sales, services, imports
Excise Duty	120.36	133.21	10.44%	Domestic production +10.01%, imports +11.06%
Income Tax	170.80	237.80	-1.42%	Underperformed compared to target
Non-Tax Revenue	70.69	–	-13.31%	Decline vs last year
Education Fees & Others	3.97	–	66.62%	Strong growth in minor revenue sources
Department of Customs	319.94	378.16	1.48%	79.31% of target achieved
Inland Revenue Dept.	356.63	438.26	3.90%	81.38% of target achieved

Nepal Governement Revenue Source Breakdown

Customs Duty

A total of NPR 144.50 billion was raised from customs duties, reaching 73.76% of the target set at NPR 195.90 billion. This marks an 8.12% increase over the NPR 133.62 billion collected during the corresponding period last year. Import activity rose by 8.04%, while exports experienced a significant increase of 225.65%, indicating a boost in trade activity.

Value Added Tax (VAT)

VAT stands as the main source of revenue, with collections amounting to NPR 225.53 billion against a projected target of NPR 246.43 billion. This reflects a 7.35% increase from NPR 210.09 billion taken in last year. The growth was steady across production, sales, services, and imports, underscoring consistent economic activity within these areas.

Excise Duty

Excise duty revenue Nepal demonstrated good performance with a 10.44% rise from NPR 108.87 billion last year to NPR 120.36 billion this year. Domestic output grew by 10.01%, and imports went up by 11.06%, but the target of NPR 133.21 billion remains unmet.

Income Tax and Non-Tax Revenue

There are still difficulties with Income tax collection Nepal 2026, which decreased by 1.42% to NPR 170.80 billion, falling short of the NPR 237.80 billion target. Non-tax revenue has also seen a decline, down by 13.31% to NPR 70.69 billion from NPR 81.54 billion last year, revealing potential areas for enhanced efficiency.

Education Service Fees and Other Sources

On a positive note, revenue from education service fees and various other minor sources grew significantly by 66.62%, totaling NPR 3.97 billion compared to NPR 2.38 billion last year.

Performance by Department

The Department of Customs raised NPR 319.94 billion, an increase of 1.48% from the previous year, reaching 79.31% of its NPR 378.16 billion target.

The Inland Revenue Department obtained NPR 356.63 billion, which is a 3.90% rise from the last year, fulfilling 81.38% of its NPR 438.26 billion goal.

Outlook and Implications

Although the growth in revenue reflects an improvement in Nepal’s fiscal condition, deficiencies in income tax and non-tax revenue underscore areas that need targeted actions. Analysts recommend enhancing tax compliance and diversifying revenue sources to meet end-of-year expectations.

The Ministry of Finance is closely observing revenue collection trends and is likely to implement strategies aimed at boosting growth in underperforming sectors. With trade, VAT, and excise duties showing strength, the government remains cautiously hopeful about reaching its fiscal year objectives.

Conclusion of Nepal Fiscal Report

As we enter the concluding four months of the budget year, the Ministry of Finance must address the simultaneous challenges of closing tax gaps and speeding up the execution of projects. The growth of online commerce and digital payment methods in Nepal is likely to draw more transactions into the formal taxation system, which may enhance unconventional sources of revenue.

At NepInsights, we maintain that openness in revenue documentation is the initial step toward financial responsibility. As the government gears up for the forthcoming budget period, the figures from the past eight months will act as a critical basis for upcoming economic forecasts.

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