Govt misses revenue target by Rs 6.81 billion

KATHMANDU, April 10:

The government failed to meet the revenue target in the eighth month of the current fiscal year as well.

According to figures released by the finance ministry, the government missed the target by Rs 6.81 billion. The government had set the target of mobilizing Rs 219.4 billion over the first eight months of 2013/14. It had missed revenue target by Rs 3.47 billion in the first seven months of current fiscal year.

Revenue growth rate also fell to 19.45 percent in the eight-month period, compared to 22.2 percent recorded in the first seven months of 2013/14.

The government targets to mobilize total revenue of Rs 354.5 billion in the current fiscal year. The government can meet the target only if revenue collection grew by 19.76 percent compared to last fiscal year.

“We have failed to achieve the target yet again,” Rajan Khanal, chief of Revenue Division under the Ministry of Finance, said. “Now tax officials should work hard in order to achieve the target in the remaining months.”

Collection of customs duty increased by 17.69 percent to Rs 42.91 billion in the first eight months of 2013/14 compared to same period last year. Similarly, collection of VAT, excise duty and income tax grew by 18.58 percent, 21.9 percent and 12.66 percent, respectively, to Rs 63.43 billion, Rs 28.13 billion Rs 41.37 billion.

Income tax grew by lower rate compared to other taxes. The government had increased the income tax exemption limit for individuals to Rs 200,000 and couples to Rs 250,000 through the budget for the current fiscal year. Earlier, the limit was Rs 160,000 for individuals and Rs 200,000 for couples.

The government has set a target to collect Rs 103.05 billion from VAT, Rs 69.35 billion from customs duty, Rs 44.94 billion from excise duty and Rs 77.2 billion from income tax in this fiscal year.

Collection of Education Service Tax grew by a whopping 57.8 percent to Rs 29.79 billion till the end of the eighth month. The government has set a target of collection Rs 38.25 billion from Education Service Tax.

Non-tax revenue grew by 24.43 percent to Rs 26.36 billion till the end of the eighth month. The government had mobilized Rs 21.18 billion in the same period of last year.

VAT (29.83 percent) was the largest contributor to total revenue collection in the first eight months of 2013/14, followed by customs duty (20.18 percent) and income tax (19.46 percent). Likewise, the contribution of excise duty and non-tax revenue stood at 13.23 percent 12.39 percent, respectively.

Source: Republica