KATHMANDU: Customs income totaled Rs 420.16 billion, accounting for more than 40% of total revenue collection in FY 2023-2024. This is 39.71 percent of the total revenue collected during the inquiry period, which was Rs 1.058 trillion. The amount collected missed the target by Rs 207.59 billion, covering only 66.93 percent of the total of Rs 627.75 billion.

The customs collected amounted to 7.54 % following the shortage even though it had a record inflow of above Rs 390.70 billion in the last fiscal year. According to the Department of Customs (DoC), the revenue collection shortfalls from customs were blamed on the effects of the ongoing economic slowdown.

According to government data, private sector lending has declined and infrastructure development spending has been inadequate, affecting investment in construction and retail companies. This decline led to reduced aggregate demand and lower merchandise imports. In the review period, imports fell by 1.16 percent to Rs 1.592 trillion, and export earnings decreased by 3.03 percent.

The Birgunj Customs Office, a main entry point for imported commodities, collected Rs 156.86 billion, or 63.8% of its objective. Bhairahawa Customs Office came in second with Rs 80.80 billion, earning only 63.2 percent of its aim, while Biratnagar Customs received Rs 30.34 billion, meeting 59.77 percent of its target.

Tatopani Customs collected Rs 13.36 billion, exceeding the objective by Rs 4.94 billion. Rasuwagadhi Customs, a vital gateway for Nepal-China commerce, fell short of its aim by collecting Rs 20.21 billion instead of Rs 20.99 billion.