21st September 2025, Kathmandu
A fire at the Internal Revenue Office (IRO) in Birgunj, caused by a violent outbreak during the recent “Gen Z movement,” has resulted in an estimated loss of nearly NPR 10 million (approximately USD 75,000) in equipment.
Fire Causes Loss
A fire at the Internal Revenue Office (IRO) in Birgunj, caused by a violent outbreak during the recent “Gen Z movement,” has resulted in an estimated loss of nearly NPR 10 million (approximately USD 75,000) in equipment. The incident, which occurred on September 9, 2025, has severely disrupted tax collection and other critical public services in the region, highlighting the vulnerability of essential government infrastructure to political unrest.
Damage Assessment and Impact on Services
The Internal Revenue Office in Birgunj suffered significant damage to its ground floor, where protestors vandalized and set fire to the premises. The tax collection branch was the most heavily affected area, with computers, printers, and other electronic devices either burned or looted. According to Rameshwarkumar Mishra, the office’s information officer, one room was completely destroyed by the fire. The initial assessment places the cost of the destroyed equipment at around NPR 10 million, though this figure is subject to change upon a more detailed evaluation. The destruction of this essential equipment is expected to cause prolonged interruptions in critical tax services, including tax filing, record-keeping, and digital communication, which are vital for local businesses and individuals.
The Birgunj IRO is a crucial hub for tax administration, contributing significantly to government revenue. The disruption of its services could lead to delays in tax collections and audits, creating a ripple effect on the local and national economy. This is particularly concerning as the damaged tax branch was one of the most active in the region.
Context of the Gen Z Movement and Broader Impact
The attack on the IRO in Birgunj is one of many similar incidents of vandalism and arson that have taken place across Nepal during the “Gen Z movement.” This nationwide protest, led by young people, was triggered by a government ban on multiple social media platforms and was fueled by long-standing frustrations with corruption, nepotism, and a lack of transparency in governance. The protests quickly escalated, leading to violence against public and private property in various cities, and even resulting in the resignation of the Prime Minister, K.P. Sharma Oli. The damage to government offices, including tax and customs offices in Biratnagar, Bhairahawa, and other cities, and even the burning of the parliament building, has been extensive.
Economists and officials have expressed alarm over these events, as they not only disrupt administrative functions but also weaken the government’s fiscal stability. The destruction of tax infrastructure directly impacts the state’s ability to collect revenue and provide essential services to its citizens. The need to fund repairs and replacements adds an unexpected financial burden on the national budget.
Government Response and Path to Recovery
In response to the widespread destruction, authorities have initiated an investigation to identify and prosecute those responsible for the violence. The government is also considering measures to bolster security at key public offices, including installing advanced surveillance systems and developing emergency response plans.
Officials from the Ministry of Finance and the Inland Revenue Department have committed to expediting the procurement of new equipment to restore core services at the Birgunj IRO. The hope is that by quickly rebuilding the infrastructure, they can minimize service interruptions and reassure the public and business community of the government’s ability to maintain continuity. The government has also initiated a broader reconstruction drive, with plans to set up a fund for rebuilding both public and private property damaged during the protests.
The attack on the Birgunj IRO serves as a stark reminder of the need for political dialogue and peaceful protest. The incident highlights the vulnerability of essential public institutions during periods of unrest and underscores the importance of a transparent and accountable government in maintaining peace and stability. The recovery process will not only involve replacing equipment but also rebuilding public trust and demonstrating that such acts of violence will not be tolerated.
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