Nepal, May 16 -- The cross-border smuggling of goods has been on rise mainly due to the collusion between customs officials and Nepal Police, causing a heavy leakage of revenues.

The Revenue Advisory Committee in its study report has pointed out the need for implementing extensive reform measures in the customs system operating in the country. The committee submitted its report to Finance Minister Bishnu Prasad Paudel on Thursday.

The government formed committee has come up with the misconducts being done at the customs points at a time when the government is struggling to generate revenue sufficient to cover even its recurrent expenditure. With only two months left for the completion of the ongoing fiscal year, the budget deficit stoo...