Consumers who ask for tax invoices when purchasing goods and services can now win cash prizes of up to Rs1 million under a new government lottery scheme aimed at improving tax compliance and boosting revenue collection.

The government has endorsed the Taxpayer Incentive Gift Programme Operation Procedure 2026, bringing into effect a measure announced in this year’s national budget. The Inland Revenue Department (IRD) will implement the scheme.

Under the programme, one consumer will win Rs133,034 every day, while two monthly winners will each receive Rs1 million.

According to the procedure, anyone making a personal purchase of goods or services worth more than Rs100 in a single transaction is eligible to participate.

Consumers paying digitally will be entered into the lottery automatically, with each qualifying transaction generating one entry.

Those paying in cash or through other non-digital means must register their tax invoice through the IRD’s official website or mobile application. They will need to provide the invoice number, the seller’s Permanent Account Number (PAN), the transaction date, purchase amount, payment method, the buyer’s name and mobile number.

The scheme excludes invoices issued for commercial purchases, utility bills such as electricity, telephone and internet services, transport and freight services, airline tickets, purchases made by government agencies or public bodies, and transactions involving vendors not registered for PAN. Each eligible invoice or digital transaction can be entered only once.

Lottery draws will be held twice a month. On the first day of every Nepali month, the IRD will draw winners from transactions recorded between the 16th and the final day of the previous month. A second draw will be held on the 16th for transactions recorded between the first and 15th of the same month.

Winners will be selected through a computerised system in the presence of senior government officials, invited dignitaries and media representatives.

Keshav Raghuvanshi, information officer at the Inland Revenue Department, said the programme is designed to encourage consumers to ask for tax invoices, improve the recording of business transactions and strengthen tax compliance.

"The objective is to make consumers active participants in the tax system by encouraging them to demand invoices for every eligible purchase," he said.

The department will notify winners by SMS and email and publish their names on its official website and social media platforms.

Prize winners must submit their claims within 15 days of the announcement at the nearest Inland Revenue Office. They will be required to produce the original tax invoice, a citizenship certificate, national identity card, passport or driving licence, bank account details and a PAN card.

A 25 percent windfall tax will be deducted from the prize before payment, in accordance with Nepal’s tax laws. The remaining amount will be deposited into the winner’s bank account within 10 days after verification of the required documents.

Any unclaimed prize money will be transferred to the Prime Minister’s Disaster Relief Fund.

The lottery complements another budget measure that offers a 10 percent Value Added Tax (VAT) rebate at the point of sale for eligible digital payments. Together, the measures are intended to promote digital transactions, improve invoice issuance and strengthen VAT compliance.

The initiative comes as the government seeks to improve revenue collection after falling short of its target in the last fiscal year.

The government collected Rs1.22 trillion in revenue in the fiscal year 2025-26, achieving only 83 percent of its annual target despite a seven percent increase from the previous year’s collection of Rs1.14 trillion, which met 80.35 percent of its target.

For the current fiscal year, the government has set a revenue target of more than Rs1.5 trillion, including revenue shared with provincial and local governments. After revenue sharing, the federal government’s net revenue target stands at Rs1.40 trillion, nearly 20 percent higher than last year’s actual collection.

To help meet that target, Finance Minister Swarnim Wagle has instructed tax authorities to intensify the recovery of outstanding tax dues. Officials at the Ministry of Finance said the government aims to recover nearly Rs100 billion in tax arrears during the current fiscal year.