Kathmandu, October 23

The government has exceeded revenue collection target in the first quarter of the ongoing fiscal year with revenue growth of 41.7 per cent compared to the corresponding period of the previous fiscal. The government has collected a total of Rs 197.87 billion against the target of Rs 191.62 billion, according to the Revenue Division under the Ministry of Finance (MoF).

The government exceeded revenue collection target under each major tax heading except value added tax (VAT) and income tax.  VAT, income tax and customs tariff are the major sources of tax revenue. Among them, VAT is the major source of revenue and the collection under VAT stood at Rs 61.02 billion against the target of Rs 65.59 billion in the first quarter. Similarly, collection under customs tariff stood at Rs 42.49 billion, whereas the target for the customs duty was Rs 38.94 billion, as per the Finance Ministry.

Likewise, the government collected Rs 33.82 billion from excise exceeding the target of Rs 29.29 billion in the review period. A shortfall was witnessed in collection of income tax as the government collected Rs 27.03 billion from income tax against the target of Rs 27.7 billion.

Similarly, the government was able to collect Rs 3.7 billion from vehicle tax, Rs 850 million from registration fees and Rs 306.43 million from health service tax. The federal government has not set any specific target under registration, health service and vehicle tax as these taxes are also handed over to the sub-national governments.

The government has also exceeded the revenue collection target under the education service tax as the collection under this heading stood at Rs 342.7 million against the target of Rs 192.5 million, as per the MoF. Similarly, the government collected Rs 6.63 billion against the target of Rs 4.18 billion under other tax heading.

Meanwhile, the government witnessed a shortfall in the collection of non-tax as the collection under non-tax stood at Rs 21.67 billion against the target of Rs 25.73 billion.

The government has raised the revenue collection target by 29.5 per cent in the current fiscal to Rs 945.56 billion compared to Rs 730.05 billion of the previous fiscal year. Revenue growth in the first quarter witnessed an encouraging growth of 41.7 per cent as the government’s revenue collection in the first quarter of the previous fiscal year was at Rs 139.65 billion.

Comparative figures 

Heading

Target

Collection

VAT

Rs 65.59bn

Rs 61.02bn

Customs tariff

Rs 38.94bn

Rs 42.49bn

Excise

Rs 29.29bn

Rs 33.82bn

Income tax

Rs 27.7bn

Rs 27.03bn

Registration fees

Rs 850m

Vehicle tax

Rs 3.7bn

Health service tax

Rs 306.43m

Education service tax

Rs 192.5m

Rs 342.7m

Other tax

Rs 4.18bn

Rs 6.63bn

Non-tax

Rs 25.73bn

Rs 21.67bn