Kathmandu, November 20:

The government can meet the revenue target that it has set in the budget, said acting Revenue Secretary Krishnahari Baskota while speaking at an interaction programme

‘Challenges of revenue collection,” organised by Mirmire Media Club here today.

Baskota duked it out saying that the government had, for the fiscal year 2008-09, set a revenue target of Rs 142 billion but was facing flak for being overly ambitious. Defending the target, he said, “The revenue target is achievable,” and added that the government will meet the revenue target as it has a complete blue-print for every month’s collection target. “It has been successful in collecting revenue according to the monthly target,” he said.

The government has charged tax on educational institutions to expand its tax net, said the revenue secretary. “Schools not paying the tax will be strictly punished,” he warned.

The government has fixed mid-December as the last date for Voluntary Disclosure of Income (VDI) and immediately after the cut-out date the government will start seizing unaccounted for property, “if the people do not heed the government’s request,” added Baskota.

He also said that the employee who collects highest tax will be awarded as the government has adopted a carrot-and-stick policy. “The incentive system will control corruption and revenue leakage,” he opined.

The majority of the country’s economists have expressed doubts about the efficacy of the budget and the ability of the government to implement it. However, Deependra Chettri, former

member of the National Planning Commission (NPC), the government think-tank, defended the budget. “It can be implemented,” he said justifying the five per cent education tax that the government has announced in this year’s budget.

Suresh Kumar Basnet of Nepal Chambers of Commerce (NCC) complained that the government brings policies but fails to implement these. “We are waiting for the implementation of new plans and policies that the government has spelled out in this budget,” he said adding that if there was will enough the government could well exceed the revenue target. He also blamed the government for bringing VDI without adequate homework. “The government should have discussed it with the private sector before bringing it,” he said.