IRD overshoots revenue collection target in Q1

KATHMANDU, NOV 08 -

The Inland Revenue Department ( IRD ) has exceeded its revenue collection target in the first quarter by 6.82 percent. It collected revenue worth Rs 20 billion against the goal of Rs 18.72 billion in the first three months of 2012-13.

The collection represents a 25 percent increase year on year. The IRD earned Rs 15.96 billion in the first three months of the last fiscal year.

Among the major tax components, income tax collection jumped 23 percent in Q1 of 2012-13, according to the IRD . The department took in Rs 6.33 billion in income tax compared to its target of Rs 4.91 billion.

However, it missed the targets for value added tax (VAT) and excise duty. The collection of excise duty stood at Rs 4.62 billion, a little short of the goal of Rs 4.69 billion. Similarly, VAT collection stood at Rs 7.18 billion against the target of Rs 7.40 billion.

The surge in revenue, according to the IRD , is result of its extensive campaign to increase public awareness regarding revenue related matters. The department has conducted 18 interactions with various professional groups on tax compliance issues since the beginning of the current fiscal year.

“Due to strict implementation of tax laws, the department succeeded in achieving a surplus in revenue collection,” said Tanka Mani Sharma, director general of the department. According to the IRD , promotional campaigns, preventive and punitive measures, several raids and stepped up monitoring, among other actions, launched by the department have begun to pay off. The IRD aims to host 1,000 similar interaction and discussion programmes within this fiscal year to educate more than 100,000 persons.

The department estimates there are 800,000 persons under the tax net. It aims to increase the number of taxpayers by 100,000 by the end of the current fiscal year.

Source: The Kathmandu Post