Revenue collection exceeds target
Kathmandu, September 26
The government has exceeded revenue collection target for the second consecutive month of this fiscal, 2016-17, as the collection under headings like customs tariff, income tax and excise duty surpassed the target. However, the collection under value added tax (VAT) — the major tax contributor — remained unmet.
In the review period (mid-July to mid-September), total revenue collection exceeded by 8.9 per cent or Rs 6.71 billion to stand at the tune of Rs 82.07 billion against the target of Rs 75.36 billion, according to the data unveiled by Revenue Division, under the Ministry of Finance, today.
This means government has collected 14.5 per cent of the total annual collection target of Rs 565.9 billion in the first two months of current fiscal.
Composition of major tax contributors has changed this fiscal. Customs tariff stands in the second position in terms of contribution surpassing the income tax, which used to be the second major tax contributor in the previous years. Customs tariff has surged as the government has enforced infrastructure tax in petroleum products from this fiscal for the development of Budhigandaki Hydropower Project. Infrastructure tax collected at customs point stood at Rs 1.16 billion during the review period.
Revenue collection in excise also exceeded target and surpassed the collection under income tax.
The collection under excise heading stood at Rs 13.77 billion against the target of Rs 11.24 billion in the review period. With this, excise stood in the third position in terms of revenue collection.
Two months’ data
Value Added Tax
Health Servie Tax
Education Service Tax
Amount in Rs billion, Source: Revenue Division, MoF
The government collected Rs 25.97 billion under VAT heading against the target of Rs 26.49 billion in the review period. Similarly, customs tariff and income tax collection stood at Rs 18.07 billion and Rs 12.22 billion, respectively. Collection under customs tariff and income tax both exceeded the set target of Rs 15.71 billion and Rs 11.83 billion, according to the Revenue Division.
Customs tariff collection has exceeded the target as import surged, but in contradiction the collection of VAT at the customs point missed the target. The government had set target to collect VAT worth Rs 15.8 billion, while the collection was Rs 15.5 billion at the customs point. Apart from the collection at customs point, VAT collection from the production, sales and services also slightly missed the target.
Collection under education and health service tax stood at Rs 138.37 million and Rs 205.69 billion,
Registration fees collection in the first two months was double the set target. Collection under registration fees heading stood at Rs 3.22 billion against the target of Rs 1.54 billion, as per the revenue collection data. The surge in collection of registration fees by the Land Revenue Offices points towards improvement in transaction of lands and houses.
Meanwhile, automobile tax failed to meet the target of Rs 1.58 billion, with the collection of Rs 1.46 billion.
The government collected Rs 2.04 billion from others tax heading and Rs 4.97 billion from non-tax heading.