Aagya Khabar
Janakpurdham

With taxpayer services now available from 34 local governments in Madhesh Province, citizens no longer have to travel to district headquarters or Inland Revenue Offices for tax-related work. As the federal government’s “Taxpayer Services from Local Governments” program is gradually being implemented, tax administration has started reaching citizens’ doorsteps.

At a time when nearly a decade has passed since the implementation of the federal governance system in Nepal, yet most administrative services have remained centralized, the expansion of tax services to local governments is being viewed as a significant achievement. Previously, taxpayers had to visit Inland Revenue Offices to complete procedures such as Permanent Account Number (PAN) registration, PAN updates, income tax registration, and excise-related processes. Now, arrangements have been made so that many of these services can be obtained directly from local governments.

According to the Inland Revenue Office, taxpayer services have so far been launched in 34 of the 136 local governments across the eight districts of Madhesh Province, including municipalities and rural municipalities in Saptari, Dhanusha, Sarlahi, Rautahat, and Bara. Preparations are underway to expand the services to the remaining local governments.

According to Amit Poudel, Chief of the Inland Revenue Office, Lahan, taxpayer services have already been launched in all 18 local governments of Saptari District. As a result, residents of the district can now register for PAN and complete initial tax-related procedures from their own local governments. However, no local government in Siraha has yet started providing such services. Tax services there are currently being delivered through the Inland Revenue Office, Lahan, and the Treasury and Comptroller Office.

Similarly, the Inland Revenue Office, Janakpurdham, stated that taxpayer services have already been launched from Mithila Municipality and Kshireshwornath Municipality in Dhanusha District. The office said that coordination and agreement processes with other local governments are also moving forward.

In Sarlahi District, taxpayer services have already begun in Lalbandi, Bagmati, Ishwarpur, Harivan, Haripurwa, and Haripur municipalities. The Inland Revenue Office, Bardibas, stated that necessary preparations are also underway to expand the services to the remaining local governments.

Taxpayer services have already been launched in seven local governments of Rautahat District, while in Bara District, services are currently available only through Jitpur-Simara Sub-Metropolitan City. It has been stated that the services will be expanded to other local governments after staff training, technical management, and necessary agreements are completed.

However, no local government in Mahottari and Parsa districts has yet started taxpayer services. According to the concerned authorities, the expansion has been delayed due to the lack of required manpower, technology, and infrastructure.

With the launch of services at the local level, tasks such as PAN registration, PAN conversion, and income tax registration are now being completed locally. Documents related to excise licenses are collected and initially verified by the local governments, while final approval is provided by the Inland Revenue Office through a digital signature system.

Vijay Yadav, Chairperson of Tirhut Rural Municipality in Saptari, said that the introduction of taxpayer services through local governments would save both the time and expenses of citizens. According to him, the hassle of traveling to the district headquarters for routine tax-related work has now begun to decrease.

Former National Assembly member and federalism expert Dr. Khimlal Devkota commented that bringing tax services to local governments represents the practical implementation of federalism. Since local governments remain in direct contact with citizens, he believes the initiative will help keep taxpayer records updated, bring new taxpayers into the system, and increase public awareness regarding taxation.

He said that the campaign would only be fully successful if there is effective coordination among the federal government, Inland Revenue Offices, and local governments. He also pointed out that the effective use of digital systems, internet accessibility, and the management of skilled human resources are key foundations for expanding the services.