Govt sets revenue collection target of Rs 565bn for next fiscal
Kathmandu, June 5
The government has set a target to collect revenue worth Rs 565.9 billion in next fiscal year 2016-17, which is an increase of 19.13 per cent as compared to the target of Rs 475.01 billion in this fiscal.
The government has set an aim to collect Rs 164.72 billion from value added tax (VAT) — the major source of revenue. However, share of VAT in total revenue collection in fiscal 2016-17 will hover around 29.11 per cent of the total target as against 29.66 per cent of this fiscal. Under VAT heading, Rs 105.39 billion is expected to be collected from imports and the remaining Rs 59.33 billion from production, sales and service providers.
Similarly, the government has targeted to collect Rs 127.52 billion or 22.53 per cent of the total revenue from income tax.
Customs tariff is expected to contribute Rs 104.74 billion in fiscal 2016-17 or 18.51 per cent of the total collection as against 17.53 per cent this fiscal. Share of customs tariff is expected to increase by around one percentage point in the next fiscal as the government has introduced infrastructure tax on petroleum products that will be collected at customs points.
The government has set a target to generate Rs 7.36 billion as infrastructure tax to finance the construction of the 1,200 megawatt Budhigandaki Hydropower project. The customs offices have already started collecting an additional five rupees per litre as infrastructure tax since the budget was presented at the Legislature-Parliament.
Excise and customs tariff have already been enforced as per the new law designed for fiscal 2016-17.
Likewise, revenue collection from excise duty is expected to hover around Rs 80.94 billion in the next fiscal. Excise is expected to contribute 14.3 per cent in total revenue against 13.85 per cent of the current fiscal.
The government also aims to generate Rs 55.3 billion from non-tax heading in fiscal 2016-17 against the target of Rs 48 billion in this fiscal, according to the Ministry of Finance.
Apart from this, the government expects to collect Rs 14.04 billion through registration fees, Rs 7.54 billion from vehicle tax and Rs 9.36 billion from other sources of tax in the next fiscal. Health and education service tax are expected to contribute Rs 968.94 million and Rs 756.25 million, respectively, in fiscal 2016-17.
The government, in the next fiscal, has set a target to collect Rs 510.59 billion through various tax headings and Rs 55.3 billion from non-tax sources of revenue.