Government Decentralizes Tax Administration, Shifting PAN Services to Local Palikas

PAN Card Service Local

6th November 2025, Kathmandu

The government has announced a major administrative restructuring in the national tax system, effectively abolishing all Taxpayer Service Offices across the country.

PAN Card Service Local

This significant move is part of a broader strategy to decentralize government services and enhance public accessibility.

Following this overhaul, many services previously provided by these offices will now be delivered directly through Local Levels (Palikas). The shift to a PAN Card Service Local Level model is the most immediate and impactful change for citizens.

The Department of Inland Revenue (IRD) issued a formal notice confirming that essential services, including the issuance of the Permanent Account Number (PAN Card), will transition to the local government units.

This initiative aims to streamline processes and reduce the burden of travel and bureaucracy for taxpayers across Nepal.

Interim Measures for Smooth Transition

The IRD recognizes that the transition of services to all local Palikas may take some time to fully implement and operationalize. To ensure service continuity during this interim phase, the Department has put a temporary mechanism in place.

While local units prepare to take over the functions, critical services, including PAN Card issuance, will be provided by the District Treasury and Controller’s Offices (Ko. Le. Ni. Ka. – Ko. Ni. Ka.) located in the respective districts.

This strategic temporary arrangement ensures that taxpayers do not face service interruptions due to the restructuring process. The IRD actively manages the phased transfer of responsibilities to guarantee minimal disruption to essential citizen services.

Digital Services Remain Crucial

The decentralization of physical services complements the existing digital framework maintained by the IRD. The Department confirmed that many core tax administration services continue to be accessible and efficient through the established online system.

Services such as tax payment, filing of tax returns, and obtaining Tax Clearance Certificates can still be completed entirely through the IRD’s digital portal.

The continuous operation of this online system ensures that critical compliance tasks are not hindered by the administrative changes taking place at the local level. The emphasis on digital platforms also highlights the government’s strategy to promote e-governance and reduce paper-based transactions wherever possible.

Impact of Decentralization

The decision to provide PAN Card Service Local Level is a major policy shift. It brings tax registration closer to citizens, particularly benefiting those in remote or less-connected areas who previously had to travel significant distances to centralized Taxpayer Service Offices. By embedding services within the Palika structure, the government hopes to:

• Improve Access: Increase the ease and frequency with which citizens can register for PAN and update their details.
• Enhance Local Accountability: Tie service delivery directly to local governance, making the process more responsive to community needs.
• Support Formalization: Encourage more individuals and small businesses to formally register, potentially broadening the national tax base.

This systemic reform marks a significant chapter in Nepal’s efforts to modernize its fiscal administration by embracing decentralization and leveraging digital tools for better service delivery.

For more: PAN Card Service Local