Kathmandu, October 27

After missing its revenue collection target for two consecutive months, the Inland Revenue Department (IRD) has been able to achieve the target set for the third month of the current fiscal year, that is, between mid-September and mid-October.

The government has collected Rs 51.64 billion or 100.56 per cent of the target through the Inland Revenue Offices. The Ministry of Finance had set a target to collect Rs 51.34 billion through the revenue collection offices till the end of the first trimester.

Data up to mid-October

Subject

Target

Achievement

Income tax

Rs 16.47 billion

Rs 15.43 billion

Rental tax

Rs 934.78 million

Rs 1.07 billion

Interest tax

Rs 3.14 billion

Rs 3.51 billion

Income tax (total)

Rs 20.54 billion

Rs 20 billion

VAT

Rs 17.72 billion

Rs 18.32 billion

Excise

Rs 12.45 billion

Rs 12.82 billion

Education service tax

Rs 381.12 million

Rs 277.96 million

Health service tax

Rs 237.97 million

Rs 202.28 million

The IRD has met the target of collecting Value Added Tax (VAT) and excise duty during the review period. However, it missed the target set for total income tax.

The office was able to collect Rs 18.32 billion under VAT heading against the target of Rs 17.72 billion and Rs 12.82 billion under excise duty against the target of Rs 12.45 billion.

However, during the first three months of the fiscal year, IRD was able to collect only Rs 20 billion in total income tax against the target of Rs 20.54 billion. IRD calculates income tax, interest tax and rental tax as total income tax.

It collected Rs 15.43 billion under income tax heading against the target of Rs 16.47 billion, Rs 1.07 billion under rental tax against the target of Rs 934.78 million and Rs 3.51 billion under interest tax against target of Rs 3.14 billion, in the review period.

Likewise, the government collected Rs 277.96 million under education service tax heading against the target of Rs 381.12 million and Rs 202.28 million under health service tax against the target of Rs 237.97 million.

Kishor Jung Karki, director general of IRD, said that the tax authority had been unable to collect much revenue in the first two months of this fiscal, but it has met the target in the third month. “Efficiency of the tax offices helped us achieve the set target for revenue collection even as there were a number of holidays in the last month,” he said.

Karki also informed that offices of IRD would continue to conduct market monitoring in the future, which is supporting to control revenue leakage in the urban areas of the country.

In the earlier two months of the current fiscal, the tax authority had witnessed shortfall under some major tax headings like VAT, excise duty and income tax.

The government has set a revenue collection target of Rs 299.91 billion for this fiscal, of which 17.22 per cent has been collected during the first three months.