Income tax second largest contributor to revenue
KATHMANDU, May 28:
Income tax has become the second largest contributer to the government coffer after Value Added Tax (VAT).
By the first 10th month of current fiscal year, income tax has contributed Rs 31.97 billion — almost 20 per cent of the total revenue — to the total revenue mobilisation that stood at Rs 158.98 billion.
Generally, VAT, customs and excise are the major contributors to the government coffer but the trend has changed since last one year as the income tax has prominently been contributing to a total revenue mobilisation.
The mandatory permanent account number (PAN) has also contributed to increase in income tax revenue. Though, it was in practice for some time, Nepal officially started distributing PAN from August 24, 2009 by awarding President, vice-president and Prime Minister it.
According to the regulation, all individuals with an yearly income of over Rs 160,000 and couples with an annual income of over Rs 200,000 have to get PAN. Similarly, house owners renting out to government agencies and other organisations as well as car owners renting out their vehicles should also have PAN that is mandatory for professionals like engineers, chartered accountants, journalists, lawyers and even actors as well as people buying shares worth over Rs 1 million.
There are above 400,000 institutions and people holding the PAN currently.
PAN is allotted only once in the lifetime of a taxpayer and it never changes. It is necessary for computer data processing of taxpayer’s information.
After income tax, customs is the third largest contributor to the government coffer as it has contributed 18 per cent to Rs 29.11 billion, whereas VAT is the largest contributor — as usual — as it has contributed 32 per cent to Rs 50.48 billion in the total revenue mobilisation. Non Tax revenue — the fourth largest contributor — has 14 per cent contribution to Rs 21.52 billion by Baishakh (mid-May) to the government coffer.
The government has been able to mobilise a total of Rs Rs 158.98 billion by the end of 10th month of the current fiscal year. “It is 14.7 per cent increment compared to the same period of last fiscal year,” informed finance secretary Krishnahari Baskota the Revenue Evaluation Committee meeting today. “In the same period last fiscal year, the government had mobilised Rs 138.56 billion revenue,” he added.
Deputy prime minister and finance minister Bharat Mohan Adhikari, on the occasion, hailed the progress in revenue mobilisation. He, however, told the officials to work toward meeting revenue target that seems to fail this fiscal year. The budget for the current fiscal year has targetted Rs 216 billion revenue.
Revenue mobilisation has been exceeding its target since last couple of years as the finance ministry had appointed a separate secretary to look after it. But the current government seems not serious on revenue mobilisation as it has not yet appointed revenue secretary after incumbent revenue secretary Baskota has been promoted to the finance secretary.
The first revenue secretary Rameshwor Prasad Khanal had started e-PAN, e-filing of returns and e-filing of withholding tax to boost the revenue mobilisation that has shown results now.
Source: THT
Income tax has become the second largest contributer to the government coffer after Value Added Tax (VAT).
By the first 10th month of current fiscal year, income tax has contributed Rs 31.97 billion — almost 20 per cent of the total revenue — to the total revenue mobilisation that stood at Rs 158.98 billion.
Generally, VAT, customs and excise are the major contributors to the government coffer but the trend has changed since last one year as the income tax has prominently been contributing to a total revenue mobilisation.
The mandatory permanent account number (PAN) has also contributed to increase in income tax revenue. Though, it was in practice for some time, Nepal officially started distributing PAN from August 24, 2009 by awarding President, vice-president and Prime Minister it.
According to the regulation, all individuals with an yearly income of over Rs 160,000 and couples with an annual income of over Rs 200,000 have to get PAN. Similarly, house owners renting out to government agencies and other organisations as well as car owners renting out their vehicles should also have PAN that is mandatory for professionals like engineers, chartered accountants, journalists, lawyers and even actors as well as people buying shares worth over Rs 1 million.
There are above 400,000 institutions and people holding the PAN currently.
PAN is allotted only once in the lifetime of a taxpayer and it never changes. It is necessary for computer data processing of taxpayer’s information.
After income tax, customs is the third largest contributor to the government coffer as it has contributed 18 per cent to Rs 29.11 billion, whereas VAT is the largest contributor — as usual — as it has contributed 32 per cent to Rs 50.48 billion in the total revenue mobilisation. Non Tax revenue — the fourth largest contributor — has 14 per cent contribution to Rs 21.52 billion by Baishakh (mid-May) to the government coffer.
The government has been able to mobilise a total of Rs Rs 158.98 billion by the end of 10th month of the current fiscal year. “It is 14.7 per cent increment compared to the same period of last fiscal year,” informed finance secretary Krishnahari Baskota the Revenue Evaluation Committee meeting today. “In the same period last fiscal year, the government had mobilised Rs 138.56 billion revenue,” he added.
Deputy prime minister and finance minister Bharat Mohan Adhikari, on the occasion, hailed the progress in revenue mobilisation. He, however, told the officials to work toward meeting revenue target that seems to fail this fiscal year. The budget for the current fiscal year has targetted Rs 216 billion revenue.
Revenue mobilisation has been exceeding its target since last couple of years as the finance ministry had appointed a separate secretary to look after it. But the current government seems not serious on revenue mobilisation as it has not yet appointed revenue secretary after incumbent revenue secretary Baskota has been promoted to the finance secretary.
The first revenue secretary Rameshwor Prasad Khanal had started e-PAN, e-filing of returns and e-filing of withholding tax to boost the revenue mobilisation that has shown results now.
Source: THT
