The government has introduced a new provision through an ordinance that allows settlements for revenue leakage cases involving amounts up to Rs 30 million. This reform enables the Inland Revenue Department (IRD) and the Department of Customs to collect revenue without filing cases with the Revenue Investigation Department, expediting the resolution process.

Under this provision, taxpayers can settle disputes by paying the outstanding amount and applicable fines without waiting for court verdicts. Additionally, the requirement to deposit cash to appeal to the Revenue Tribunal has been replaced with the option to submit a bank guarantee for the case's duration.

Previously, cases involving revenue leakage exceeding Rs 5 million required mandatory lawsuits, often delaying revenue collection as disputes remained unresolved in courts for years. In many instances, taxpayers were unable to pay their dues because of the court cases despite their willingness to settle the dues. The ordinance, introduced under the Economic and Business Environment Reform and Investment Promotion initiative, amends the Revenue Leakage Control and Prevention Act, 2052, addressing these issues.

Rajesh Agrawal, president of the Confederation of Nepalese Industries, welcomed the change, stating, “The previous system, which mandated cases for amounts over Rs 5 million, caused losses for both the state and taxpayers. Raising the threshold to Rs 30 million is a significant and positive step.”

The government has also repealed a provision in the Black Marketing Act, 2008, which criminalized profit margins exceeding 20 percent. Agrawal described this change as another step forward in promoting economic reform.

The ordinance introduces provisions for settling certain criminal cases related to revenue leakage. If an agreement is reached between the two parties involving the government, court-imposed fines and penalties can be waived. Furthermore, individuals can now appeal by depositing 15 percent of the fine amount instead of the entire sum, addressing cases where defendants had to appeal from the jail due to their inability to pay the bail fixed by the court and later found innocent.

The ordinance also streamlines the confiscation of criminal assets. Vehicles and other assets submitted to the court can now be auctioned immediately or used by the owner at a reduced price, provided the fine amount is deposited with the court.

A senior official from the Office of the Prime Minister and Council of Ministers said, “The new provisions reduce procedural delays and simplify handling assets involved in criminal activities.”