Lack in coordination hits revenue

KATHMANDU, APR 04: 

Finance Ministry has concluded that due to the lack of exchange of information between its various departments, there has been less transparency and growing ineffectiveness in revenue collection.

The ministry had two months back formed a committee led by its joint secretary Rajan Khanal to carry out a study to enhance the effectiveness of the revenue administration. 

“The Department of Revenue Investigation’s capacity will be enhanced to control revenue leakages by establishing interdepartmental computer network through information and communication networking,” the budget for the current fiscal year has mentioned.

The committee suggested the ministry to expedite the use of Information and Communication Technology to ensure ‘transparency and efficiency in service and effectiveness in system’, added chairperson of the committee Khanal.

The trend of using modern IT software to keep an overall record has increased in different departments including the Department of Customs and Inland Revenue Department, said Khanal. “But, the use has failed to yield expected results due to the lack of coordination between different departments.”

Principally, Department of Revenue Investigation should have access to the database of all departments to check revenue fraud, he said. “However, the department does not have access to the database of other departments due to the lack of an exchange mechanism.”

The committee recommended the government to promptly initiate action to establish a link between different agencies – Department of Revenue Investigation, Department of Customs, Inland Revenue Department and Revenue Administrative Training Centre. 

The committee also asked the government to establish a separate IT division in the Finance Ministry for the coordination and effective exchange of data. “The division will also work to empower manpower and make them IT friendly.”

The report of the committee has also suggested the Finance Ministry to develop a long-term master plan regarding the utilisation of Information and Communication Technology, said Khanal.