Govt unlikely to meet revenue target

KATHMANDU: The revenue collection for the current fiscal year 2014/15 is estimated to fall below the target, according to the Inland Revenue Department (IRD).

The decline in the collection of revenue was estimated in light of damages of the physical infrastructures caused by the April 25 quake and subsequent aftershocks, shared Chudamani Sharma, Director General of the IRD.

"We had targeted to collect Rs 11.51 billion from April 14 to May 14 this year, but we could only garner Rs 6.94 billion," shared the official, "That is why we assume that we will not be able to collect revenue on a par with our target."

Of total revenue collected from April 14 to May 14, around Rs 1.8 million was collected from income tax while only Rs 93,000 was collected under the House Rent tax as against expected Rs 3 million.

Similarly, he informed that the IRD collected around Rs 1.3 million under the fractional tax title while Rs 1.9 million was received under the excise duty.

Likewise, DG Sharma further said that about Rs 13,000 could be collected as against the expected Rs 25,000 under the education service Tax. The IRD collected Rs 9,000 under the health service tax.

Although the IRD had targeted to collect Rs 169 billion revenue within the current fiscal year, it could only collect Rs 128 billion as of May 14, according to Bhupalraj Shakya, Director of the Collection Department at the IRD.