Govt introduces taxpayer incentive gift programme to promote tax compliance

By A Staff Reporter, Kathmandu, July 22: The government has introduced the Taxpayer Incentive Gift Programme Operation Procedure, 2083 with the objective of increasing tax compliance, encouraging consumers to obtain genuine VAT invoice and promoting the recording of actual business transactions.

The Ministry of Finance issued the operational procedure under the Financial Procedures and Fiscal Responsibility Act 2076, allowing consumers purchasing goods and services within Nepal to participate in the incentive programme by obtaining authentic purchase bills. 

The procedure has come into immediate effect. The Ministry of Finance introduced this scheme under the announcement of the budget for the fiscal year 2026/27. According to the procedure, consumers who purchase goods or services for personal use worth more than Rs. 100 in a single transaction within Nepal will be eligible to participate. 

One reward ticket will be generated through the system for each qualifying purchase invoice or eligible electronic payment transaction.

Eligible purchases made through electronic payment systems will be automatically entered into the programme. For cash transactions, consumers must submit the invoice details through the Inland Revenue Department's web portal, mobile application or other designated electronic platforms. 

The invoice will be included in the programme only after the system automatically verifies the submitted details.

As part of the scheme, the Inland Revenue Department (IRD) will select one daily winner, who will receive a cash prize of Rs. 133,334. 

In addition, one bumper winner will be selected every fortnight (15 days) to receive a Rs. 1 million cash prize. 

A 25 per cent tax on windfall gains, as stipulated under the Income Tax Act, 2002 (2058 BS), will be deducted from the prize money before payment.

The winners will be selected through an automated system on the 1st and 16th day of every month. Their names will be published on the Department's official website and social media platforms, while winners will also be notified via mobile phone and email.

According to the procedure, consumers buying goods for commercial purposes, or making purchases without obtaining a Permanent Account Number (PAN)-based invoice, will not be eligible to participate in the government's invoice lottery programme.

The rules also bar invoices issued in the name of government agencies or public institutions from being entered into the programme. Likewise, invoices related to telephone and internet services, electricity bills, transport and freight services, and air ticket purchases are not eligible for the scheme.

In addition, the same invoice or a purchase made through the same electronic payment transaction cannot be entered into the programme more than once.

To claim the prize, winners must submit an application to the nearest Inland Revenue Office within 15 days of the announcement, along with the original invoice, proof of identity, bank account details and PAN. 

Following verification, the prize money will be deposited into the winner's bank account within 10 days.

If a winner fails to claim the prize within the stipulated period, the prize amount will be transferred to the Prime Minister's Disaster Relief Fund.

The Ministry of Finance expressed confidence that the programme will encourage consumers to demand genuine invoice for every purchase, help curb tax evasion, and contribute to making Nepal's tax system more transparent, accountable and effective.