Kathmandu, September 26
Shortfall in collection of value added tax (VAT) and income tax hit the government’s revenue collection in the first two months of current fiscal year 2017-18.
The Inland Revenue Department (IRD) has posted revenue collection of Rs 35.27 billion in the review period, which was 96 per cent of the set target. The Ministry of Finance had set revenue collection target of Rs 36.68 billion through IRD in the first two months.
According to IRD, it collected Rs 14.23 billion income tax in the first two months and Rs 12.90 billion VAT in this period, which was 92 per cent and 97 per cent of the target, respectively.
IRD managed to exceed target only in excise duty in the period, which stood at Rs 7.73 billion or 105 per cent of its set target.
Similarly, the IRD also could not meet the target set for education service tax and health service tax. It collected Rs 156.58 million in education service tax, which was 88 per cent of the set target and Rs 250 million under health service tax, which was 73 per cent of the target.
Even as the tax authority was unable to meet the set target for the first two months of the current fiscal year, the amount was an increase of 22 per cent against the same period of last fiscal year. Collection under income tax increased by 17 per cent, VAT by 23 per cent, excise duty by 30 per cent, education service tax by 13 per cent and health service tax by 22 per cent in the first two months.
The government has set a target of collecting Rs 299.91 billion through IRD in the current fiscal year.
In this backdrop, Kishor Jung Karki, director general of IRD, had directed officials of the revenue department to identify the lapses and initiate reforms for revenue collection. Concluding the monthly review meeting of the IRD, he also said that the department will continue market monitoring throughout the year and it is expected to help expand the tax net.
|Two months’ collection data|
|Excise Duty||Rs 7.73bn||105%|
|Health Service Tax||Rs 250m||88%|
|Education Service Tax||Rs 156.58m||73%|
A version of this article appears in print on September 27, 2017 of The Himalayan Times.