Govt misses revenue collection target
Percentage of target
Rs 74.72 billion
Rs 75.68 billion
Rs 50.50 billion
Rs 41.07 billion
Rs 5.15 billion
Rs 5.68 billion
Education service tax
Rs 451.31 million
Health service tax
Rs 612 million
Rs 6.11 billion
Rs 31.39 billion
Kathmandu, May 11
Failure to recover the revenue collection that was hit during the four-month long border blockade has the government grappling with a shortfall of Rs 50.5 billion in the first nine months of this fiscal.
The government had a target to collect revenue worth Rs 341.86 billion during the first nine months of the current fiscal. However, the collection amount stood at Rs 291.36 billion, which is 85 per cent of the target in the review period.
The government has missed revenue collection target under every tax heading except income tax and vehicle tax. There is a huge gap between the set target and collection of value added tax (VAT), the largest source of revenue. The government had targeted to collect Rs 101.56 billion under VAT heading in the first nine months of the fiscal. However, the collection stood at Rs 74.72 billion.
The government, however, nearly managed to meet the target set for income tax collection. It collected Rs 75.68 billion in income tax against the target of Rs 76.17 billion.
Customs revenue collection, which had declined sharply during the blockade that started towards the end of September, has been gaining momentum. Overall customs revenue collection stood at Rs 50.50 billion, which is 84 per cent of the target set for the review period.
Revenue collection from excise has also improved in recent months. The government collected Rs 41.07 billion, which is 88 per cent of target set for excise.
Exceeding the target by Rs 0.35 billion, the government was able to collect Rs 5.68 billion from vehicle tax. Revenue collection under registration fees stood at Rs 5.15 billion, where the government missed 49 per cent of the set target.
Revenue collection under education and health service tax stood at Rs 451.31 million and Rs 612 million, respectively. The government missed its target for education tax by 30 per cent and 26 per cent in health service tax.
Similarly, the government collected 90 per cent of the target from non-tax revenue sources worth Rs 31.39 billion.
The government had set a target to collect revenue worth Rs 475 billion in this fiscal. The amount collected till the first nine months stands at 61 per cent of the annual target.