The number of businesses registered for the Value Added Tax reached 18,377 in the fiscal year 1999/00, about 600 more than what the government had planned to bring under the new arrangement. Kathmandu topped the number of registrations (7,105) followed by Biratnagar (1,381) and Bhairawa (1330). By law, all businesses crossing the investment threshold of Rs 2 million are required to register with the VAT department. VAT collection for the same period was Rs 10.42 billion, very close to the budget's target of Rs 10.46 billion.