KATHMANDU, DECEMBER 19
Internal revenue collection has failed to meet the target set for the current fiscal year. In the first five months of the current fiscal year 2022-23, the revenue collection was 13.63 per cent less than the target, according to the Inland Revenue Department (IRD).
The department had set a goal of collecting domestic revenue worth Rs 174.37 billion but during this period, only Rs 150.5 billion was collected, which is about Rs 24 billion less than the target.
Likewise, during the same period no target was met in the income tax, value added tax (VAT) and excise duty revenue collection. The collection of income tax reached 80.61 per cent of the set target, value added tax at 82.47 per cent and excise duty at 97.9 per cent by the end of first five months, that is from mid-July to mid-December.
Meanwhile, collection under health care tax and education tax exceeded the target. According to the IRD, the global scenario and the impact of internal problems on the economy caused obstruction in revenue collection.
IRD Director Raju Prasad Pyakurel said that the department set the target by estimating the normal situation but was unable to meet the target due to the extraordinary situation.
Due to sluggish capital market and real estate transactions, income tax collection has been affected this year.
Similarly, the department also acknowledged that the revenue collection has dropped due to liquidity crisis in banks, non-availability of working capital loans, restrictions on the import of goods and low capital expenditure of the government.
A version of this article appears in the print on December 20, 2022, of The Himalayan Times.
