Govt exceeds overall revenue collection target by Rs 686m

KATHMANDU:

Despite missing the collection target of major tax headings like Value Added Tax (VAT), customs tariff, excise and income tax, the government’s overall revenue collection exceeded the set target during the first seven months (till mid-February) of the fiscal 2014-15.

Unveiling the preliminary data of revenue collection during mid-term review of fiscal budget, the Ministry of Finance (MoF) today said that it had collected 50.97 per cent revenue of its total annual target of Rs 422.9 billion during the review period and the revenue collection growth hovers at 14 per cent compared to the corresponding period of last fiscal.The government aimed to collect Rs 214.9 billion in the first seven months, whereas collection stood at Rs 215.5 billion, exceeding the target by Rs 686 million. The government collected Rs 197.8 billion from tax revenue and Rs 17.7 billion from non-tax sources, as per MoF.

VAT was the major contributor, as its collection stood at Rs 64.8 billion, which is 30.07 per cent of the total revenue. It was followed by income tax, which amounted to Rs 44.71 billion or 20.7 per cent of the total revenue collection.Similarly, collection of customs tariff and excise stood at Rs 42.5 billion and Rs 28.9 billion, respectively.

MoF slightly missed the target set for these major tax headings during the review period.Education service tax also missed the target by Rs 26 million, as the collection amounted to Rs 291 million.Collection of rest of the taxes, like, health service tax, registration tax and vehicle tax, among others, showed good performance. Collection of registration tax stood at Rs 5.53 billion, vehicle tax at Rs 3.83 billion, health service tax at Rs 352.6 million and other taxes at Rs 6.94 billion during the review period.Likewise, the non-tax revenue collection stood at Rs 17.7 billion, against the target of Rs 16.4 billion.

Source:THT