Reforming non-tax revenue system; taskforce seeks public feedback

KATHMANDU, JAN 03 -

The Non-Tax Revenue Reform Taskforce has sought public feedback on how to reform the non-tax revenue system.

Non-tax revenue covers components like royalty, dividend, penalty, and registration fees, among others.

The taskforce, headed by former Finance Ministry Joint Secretary Surendra Mani Tripathi, has sought public opinion on increasing the rate and scope of non-tax revenue, reviewing the selling price of goods and services, and legal reforms required within the next 15 days.

The body, formed two weeks ago, has also sought suggestions on how to make revenue collecting agencies more responsible and effective, bases of sharing non-tax revenue between the central and local governments and ways to collect more revenue from natural resources.

Rajan Khanal, chief of the ministry’s revenue department, said the taskforce

has been asked to submit the report within mid-April.

“Based on the suggestions of the taskforce, necessary measures will be announced in the next fiscal year’s budget,” he said, adding the taskforce will basically recommend on the adjustments to be made in the revenue rate, making non-tax revenue collecting agencies more effective and expanding the non-tax revenue net.

The taskforce was formed as per the budgetary provision. The budget for the current fiscal year has talked about forming such a taskforce to identity new sources of non-tax revenue and increase the contribution of the sector to the overall government revenue.

In fiscal year 2012-13, non-tax revenue collection stood at Rs 36.4 billion—12 percent of total revenue.

Although public enterprises (PEs) should have been the big contributors to non-tax revenue due to a huge government investment, a majority of the PEs are facing losses. In 2011-12, 21 out of 37 PEs incurred losses, according to the Annual PE Progress Report 2013.

That’s why the government could only get Rs 6.26 billion dividend, with the contributors being only Nepal Telecom and Rastriya Banijya Bank.

Other private sector telecom operators have also contributed heavily to the government’s non-tax revenue, according to Khanal. Nepal Rastra Bank has also been an important contributor.

Source: The Kathmandu Post