Govt rakes in profit of 23 pc in 2007-08 revenue collection

Kathmandu, August 1:

The government collected Rs 107.53 billion as revenue in the fiscal year 2007-08 — a 23 per cent increase in comparison to the fiscal year 2006-07, according to the Nepal Rastra Bank (NRB).

“Such impressive growth of revenue was on account of substantial increase in import of merchandise goods and resulting increase in customs duties, VAT revenue and excise duties, increase in income tax and non-tax revenue,” states the central bank.

Revenue mobilisation soared by 25.5 per cent amounting to Rs 90.17 billion in the first 11 months of 2007-08, compared to an increase of 20.8 per cent in the corresponding period last fiscal year.

Of the total revenue mobilisation, VAT revenue grew by 18.8 per cent to Rs 28.7 billion in mid-June 2008. In the review period, customs revenue rose by 21.2 per cent to Rs 18 billion compared to an increase of 11.4 per cent in the same period the previous year. Reforms in customs administration, increase in import of high tax yielding vehicles and spare parts as well as rise in the amount of Indian excise refund contributed to such a high growth of customs revenue.

In the review period, excise revenue increased by 24.6 per cent to Rs 9.41 billion compared to an increase of 35.8 per cent in the same period of the previous year. Reforms in excise administration, identification of new excisable goods and increase in imports of high tax yielding vehicles accounted for such high excise revenue in the review period.

Income tax revenue increased by 29.8 per cent to Rs 14.54 billion in the first 11months of 2007-08. The evolution of corporate culture on account of growth in banks and financial institutions contributed to such a high growth of income tax collection. Last year such revenue had risen by 31.4 per cent.

In the review period, non-tax revenue grew by 41.7 per cent to Rs 15.55 billion compared to an increase of 19.7 per cent in the same period the preceding year. The increase in non-tax revenue was on account of increase in dividend paid by some public enterprises including NRB as well as the amount received by the government in the form of principal repayment from Nepal Telecom, Nepal Electricity Authority and Civil Aviation Authority of Nepal.

In the last 11 months of the fiscal year 2007-08, the government received foreign cash grants of Rs 14.68 billion compared to that of Rs 13.38 billion in the corresponding period the previous year.

In the review period, major assistance included support provided by Asian Development Bank (ADB) to Rural Reconstruction and Rehabilitation Sector Development Programme (RRRSDP), Germany for Middle Marsyangdi Hydroelectric Project, World Bank for Poverty Alleviation Fund, Road Sector Development Project, Irrigation and water Resources Management Project and Education For all Projects, the UNICEF for Decentralised Action for Children and Women, Health and Nutrition, and HIV/AIDs programme and Finland for Rural water Supply and Sanitation Project.

Break-up of revenue rise

•12 months — rose by 23 per cent to Rs 107.53 billion revenue in comparision to the last fiscal year

•11 months — rose by 25.5 per cent amounting to Rs 90.17 billion compared to an increase of 20.8 per cent in the corresponding period of last fiscal year

•10 months — rose by 24 per cent ammounting to Rs 78.99 billion compared to an increase of 22.5 per cent in the corresponding period of last fiscal year.

•Nine months — rose by 25.1 per cent amounting to Rs 70.85 billion compared to an increase of 22.2 per cent in the corresponding period of the last fiscal year

•Eight months — rose by 26.2 per cent amounting to Rs 60.61 billion compared to an increase of 16.4 per cent in the corresponding period of the last fiscal year.