PEs poor health hits revenue

KATHMANDU,DEC 20: 

The government will fail to mobilise non-tax revenue as projected due to poor financial health of Public Enterprises (PEs).

The government has mobilised a total of Rs 7.47 billion non-tax revenue during the first five months of current fiscal year, spokesperson at the ministry Rajan Khanal said, adding that the collected amount is half of the target since the government had projected to collect Rs 14.5 billion revenue from non-tax sector in the same period.

The government has set the target of Rs 36.94 billion revenue mobilisation from non-tax sector alone, out of the total Rs 247 billion revenue target for the current fiscal year.

Most of the Public Enterprises (PEs) are in the dire need of investment but the budget has projected royalty, interest and reimbursement from them, he added.

Nepal Electricity Authority (NEA), Nepal Oil Corporation (NOC) and Civil Aviation Authority of Nepal (CAAN) have to pay Rs 750 million, Rs 500 million and Rs 200 million, respectively to the government, Khanal said, adding that the government has yet to recover Rs 320 million under non-tax revenue from Nepal Airline Corporation (NAC), Nepal Drinking Water Corporation, Hetauda Cement and Udaypur Cement.

“The government can meet non-tax revenue target only if Nepal Rastra Bank and Nepal Telecom will pay higher than projected non-tax revenue,” he explained. “Generally, the non tax revenue is collected at the end of fiscal year,” he said,being hopeful. “But the preliminary mobilisation is not so encouraging.”

The sources of non-tax revenue are fees, fines and penalties, registration fees, bonus from public enterprises, levy and grants and gifts.

After the discouraging symptom of non-tax revenue mobilisation, the Finance Ministry is planning to revise the non-tax revenue compliance. “The ministry will expand tax base for non-tax revenue mobilisation,” Khanal added.

Source: THT