Revenue mobilization up 20 percent

KATHMANDU, Feb 3:

Revenue mobilization went up by 20 percent during the first half of fiscal year 2013/14 compared to figures of the same period last year.

The Ministry of Finance (MoF) released the fresh data at a revenue review meeting attended by senior government officials on Sunday. The government has set the target to collect Rs 354 billion in 2013/14.

According to the data, the government mobilized Rs 163 billion from different sources, up from Rs 135 billion recorded during the first half of 2013/14.

The collection of customs duty and VAT increased by around 20 percent each to touch Rs 32.48 billion and Rs 47.98 billion, respectively. Similarly, the government mobilized excise duty and income tax worth Rs 21.41 billion and Rs 34.26 billion, up by 21 percent and 12 percent, respectively, compared to amounts raised during same period last year. The collection of registration fees, vehicle tax and other taxes combined increased by 40 percent to Rs 6.08 billion.

The ministry reported 42 percent rise in non-tax revenue during the review period. The government collected Rs 20.69 billion in non-tax revenue during review period.

During the review period, contribution of VAT, customs duty and income tax stood at 30 percent, 20 percent and 21 percent of the total collection, respectively. Similarly, excise duty covered 13 percent, non-tax revenue 13 percent, registration fees two percent and vehicles tax one percent of the total revenue collection.

The meeting was attended by Rabindra Kumar Shakya, vice-chairman of National Planning Commission (NPC), Nepal Rastra Bank Governor Dr Yuba Raj Khatiwada, Finance Secretary Shanta Raj Subedi and senior revenue officials, among others.

Speaking on the occasion, NPC vice-chairman Shakya directed concerned officials to take serious measures for driving up capital expenditure that plays a key role in increasing revenue mobilization. He also suggested that the revenue officials make timely review on non-tax revenue rates.

Likewise, Governor Khatiwada cautioned the government toward slower economic activities and consequent impact in revenue mobilization due to weak performance in capital spending and swelling liquidity in Bank and Financial Institutions (BFIs).

Finance Secretary Subedi expressed dissatisfaction over weak progress in income tax mobilization. He directed revenue collection to take up more stringent measures to shore up revenue in the coming days.

Source: Republica