Revenue collection exceeds target by Rs 5.04bn in first half

KATHMANDU:

Revenue collection stood at Rs 190.52 billion surpassing the target of Rs 185.48 billion during the first half of this fiscal 2014-15. The Ministry of Finance (MoF) said that the revenue growth is 16.57 per cent higher than the corresponding period of the previous fiscal year.

Though the tax administration failed to achieve targets of major taxes like Value Added Tax (VAT), customs duty, income tax and excise, revenue collection exceeded the target due to improved collection of non-tax revenue, registration fee, vehicle tax and health service tax.

The government missed the VAT target by Rs 1.22 billion. VAT collection during the review period stood at Rs 55.66 billion. It contributed 29.21 per cent of the total revenue collection followed by income tax with 20.6 per cent. The government was able to collect income tax worth Rs 39.31 billion during the review period, while the target was set at Rs 40.66 billion.

Likewise, collection of customs duty stood at Rs 36.32 billion against the target of Rs 36.37 billion. Collection of excise duty stood at Rs 25.06 billion in the review period, according to the Revenue Division of MoF.

Non-tax revenue contributed Rs 16.12 billion in the first half, though the government had set a target to collect Rs 13.49 billion under this heading. Registration fee, vehicle tax and health service tax exceeded the target. However, education service tax missed the target.

As per the Revenue Division of MoF, Rs 4.62 billion was collected as registration fee against a target of Rs 2.39 billion. Similarly, vehicle tax contributed Rs 3.43 billion against the target of Rs 3.15 billion. The government collected Rs 340 million from health service tax and Rs 260 million from education service tax, while the target for both was set at Rs 290 million each.

Source: THT