Revenue collection surges 36.7 per cent
The government collected Rs 120.52 billion in the first two months of the current fiscal — an impressive 36.7 per cent growth compared to the corresponding period of the previous fiscal. Despite the exponential growth, however, the revenue collection target was missed in the review period.
As per data unveiled by the Revenue Management Division of the Ministry of Finance (MoF), the government collected Rs 37.62 billion under value added tax (VAT) compared to Rs 28.03 billion in the same period of the previous fiscal.
Customs tariff collection was witnessed at Rs 24.67 billion compared to Rs 18.53 billion in the corresponding period of previous fiscal. The government collected Rs 19.44 billion under income tax heading, against Rs 14.33 billion in same period of previous fiscal. Under excise heading, the government’s collection stood at Rs 18.76 billion compared to Rs 14.84 billion in last fiscal.
According to MoF, the government collected Rs 529.85 million through registration fees; Rs 2.29 billion as vehicle tax; Rs 3.7 billion under other heading of tax revenue in the first two months of the ongoing fiscal.
Likewise, the government received Rs 10.85 billion from non-tax heading in the review period. Such collection stood at Rs 5.56 billion in the first two months of previous fiscal 2017-18, as per MoF.
As per the intergovernmental fiscal management act, 15 per cent of the revenue collected under VAT and internal excise will be shared with provincial and local bodies in equitable manner.
Though collection under the major tax heading increased substantially, the government was able to collect only 97.82 per cent of the target of Rs 122.47 billion in the first two months, as per the MoF.
Revenue Secretary Shishir Kumar Dhungana claimed that the revenue target could be met as the data of revenue collection is yet to come in from a few districts. The revenue administration has been gearing up to expand the tax bracket and control pilferage to meet the annual revenue collection target.
The government has set a revenue collection target of Rs 945.56 billion in this fiscal compared to Rs 730.05 billion of the previous fiscal 2017-18.
Source: The Himalayan Times