IRD collects Rs 2.68 billion in revenue

KATHMANDU, July 26:

Annual revenue mobilization of the Inland Revenue Department (IRD) has grown by 19 percent in 2013/14 in comparison to the corresponding period of fiscal year 2012/13.

Revenue Division under Ministry of Finance has set the target of Rs 137.75 billion for IRD whereas it has collected Rs 144.44 billion, which is two percent more than the target. IRD has mobilized Rs 77.8 billion from Income tax, Rs 34.37 billion from value added tax (VAT), Rs 27.38 billion from excise duty.

Mobilization of VAT has increased by five percent, excise by 2 percent and income tax by 1 percent. Revenue mobilization from the education and health service tax accounted for Rs 434 million and 444 million respectively. Education and health service taxes have exceeded the target by 14 and 16 percent respectively, according to IRD.

Growth of income tax remained 16 percent compared to the fiscal year 2012/13. Likewise, growth of VAT and excise remained 21 and 24 percent respectively.

Similarly, education and health service tax growth accounted for 36 and 31 percent in 2013/14 in comparision to 2012/13.

There are altogether 1.3 million taxpayers across the country. Of them, 140,000 taxpayers are under VAT net.


7,000 taxpayers in tax net within a year

Altogether 7000 taxpayers have come under the tax net in the fiscal year 2013/14 in Pokhara. The number of taxpayers went up due to tax participation by lawyers, doctors and other professionals as well as business firms, according to the Inland Revenue Office (IRO) Pokhara, “Intensive monitoring, tax awareness and tax participation have played vital role in increasing the number of tax payers.” IRO Pokhara has collected Rs 2.35 billion in the review period.

“Number of tax payers reached 63,000 in Gandaki and Dhaulagiri zones,” Jagadishwor Upadhaya, chief of the Inland Revenue office at Pokhara, who looks after Gandaki and Dhaulagiri zone told Republica, “We´ve convinced professionals and the business firms to come under the tax net.” Tax participation of the cooperatives has also increased, according to Upadhyaya. Inland Revenue office Pokhara has collected revenue as per the target given by the Inland Revenue Department (IRD).

Source: Republica