Revenue collection drops 3.64 per cent
Kathmandu, October 5
The ongoing protests in Tarai-region of the country, which has continued since last 54 days, has triggered significant revenue loss.
As per Revenue Division of the Ministry of Finance (MoF), revenue collection dropped by 3.64 per cent in first two months of 2015-16, as compared to the collection in corresponding period of previous fiscal year. This could make it difficult for the government to achieve its aim of 12 per cent revenue growth as against
previous fiscal’s target of Rs 422.90 billion.
The revenue collection of first two months stood at Rs 53.08 billion, compared with Rs 55.08 billion in the corresponding period of previous fiscal.
The government had set the target of collecting Rs 66.11 billion in revenue in first two months of this fiscal. In this regard, the government missed its target by 14.54 per cent in the review period.
The government missed collection target in almost all major revenue headings. Value added tax (VAT) — the major contributor to the country’s revenue — and customs revenue were largely affected as import and economic activities were affected due to the protests. VAT collection missed the set target by 18.31 per cent and stood at Rs 18.44 billion.
Compared to the collection from production, sales and service, VAT collection in import was largely affected.
VAT in import and customs revenue were affected substantially as the agitating Tarai-based political parties blocked movement of vehicles from India to Nepal by launching protests along the Nepal-India border and imported goods continue to be stranded at border points and in Kolkata port.
Customs tariff collection stood at Rs 10.86 billion in the review period. The government had targeted to collect Rs 12.49 billion from customs tariff in first two months of the current fiscal year.
According to the Revenue Division of MoF, income tax — the second largest tax — has exceeded the target by Rs 2.24 billion to Rs 11.4 billion. Collection of excise duty stood at Rs 7.32 billion, as against the target of Rs 9.18 billion.
The non-tax revenue collection stood at Rs 3.35 billion, missing the set target by 13.73 per cent. The government had targeted to collect Rs 4.47 billion under non-tax heading within the first two-months of this fiscal.
The government also missed the revenue collection target in tax headings like vehicle tax, registration tax, health and education service tax.The government has set the target of collecting a total of Rs 475.01 billion in this fiscal.