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Government implements measures in bid to ensure Nepal’s exit from FATF grey list: Minister Paudel

Metakhabar by Metakhabar
August 5, 2025
in Featured-news, News, Politics, Society
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Govt to combat national disaster with all its might: Finance Minister Paudel
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Kathmandu, Aug 5: Deputy Prime Minister and Minister for Finance, Bishnu Prasad Paudel, has said that the government will implement a special action plan, including a campaign to recover unpaid taxes, in the current fiscal year. According to the Minister, these initiatives are essential to meet the revenue collection target.

Responding to concerns raised by lawmakers during a meeting of the House of Representatives (HoR) today, the Finance Minister said the government has introduced comprehensive policies and programmes to accelerate revenue mobilization and prevent money laundering.

In response to lawmaker Surya Prasad Gautam, the Minister said that total revenue collection last year amounted to Rs 1,196 billion, an 11.33 percent rise compared to the previous year. “The government has set an even higher target for the current fiscal year.”

To achieve this, an internal revenue mobilization strategy has been implemented. The Ministry is regularly reviewing revenue collections and is prepared to launch an action plan intended at the recovery of tax arrears, according to him.

The Minister also stated that corrective tax approach has been introduced through the current fiscal year’s budget. These include adjustments to tax rates, expansion of the tax base, promotion of tax compliance, and effective operation of the digital tax system, he added.

“The government is fully committed to enhancing the efficiency and capacity of the overall revenue administration,” the Minister assured.
During the session, lawmaker Prem Suwal questioned the government about Nepal’s positioning on the Financial Action Task Force (FATF) grey list. In response, the Finance Minister said the government has taken significant measures, including amendments to 19 laws, to ensure Nepal’s removal from the list.

Besides, new rules and directives have been issued and implemented. The enforcement of the Money Laundering Prevention Regulation, 2081 (2024) and the Rapid Economic Implementation Action Plan, 2082 (2025) is part of the government’s effort to address FATF concerns, as the Minister informed the lower house session.

Further, directives have been issued to dealers of precious metals and stones, casino operators, and real estate businesses to improve transparency and accountability in the financial system.

He went on to say that four coordination mechanisms established for regulation, investigation, counter-terrorism and implementation facilitation reflect the government’s seriousness in meeting FATF standards.

“We are not only committed to exiting the FATF grey list but also to ensuring that Nepal does not fall into such a situation again in the future,” the Minister affirmed.

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U.S. Embassy Reaffirms Commitment to Strengthening Nepal’s Health Systems
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