Government misses revenue target by Rs. 52.27 billion

Kathmandu January 25- The government was able to collect only Rs 164.33 billion revenue against a target of Rs 216.60 billion in the first half of this fiscal due to disruption in supply lines from India.

This had adversely affected revenue collection at border points. The government lost customs revenue worth Rs 32.64 billion from the total shortfall of Rs 52.27 billion during the review period.

The Department of Customs collected only 66 per cent revenue of its target in the first half of the fiscal. DoC’s revenue collection was hampered due to the ongoing border blockade of Madhes-based parties that started in the last week of September.

DoC collects customs tariff, value added tax, excise and other taxes at the border points and has 50 per cent weightage in tax revenue.

Due to erratic supply and over 60 per cent drop in import of fuel in the first six months, the revenue generated at the customs points fell sharply, said Rajan Khanal, revenue secretary at the Ministry of Finance.

The Inland Revenue Department, which collects income taxes from corporate houses and individuals, VAT, excise, health and education service tax also missed its target by Rs 9.64 billion. IRD collected Rs 78.96 billion in the first half as against a target of Rs 88.60 billion.

The government failed to meet the collection target under all tax headings in the review period.

Collection of VAT stood at just 74 per cent of the targeted Rs 65.88 billion. Income tax collection also dropped by 12 per cent of the target of Rs 48.02 billion.

Collection of customs tariff accounted for Rs 27.52 billion as against a target of Rs 38.31 billion during the review period. Similarly, collection of excise duty was Rs 22.12 billion as against the target of Rs 30.21 billion.

Vehicle tax and registration fee collection also declined by 42 per cent and 38 per cent of the target to stand at Rs 3.47 billion and Rs 2.45 billion, respectively.

Non-tax that comprises royalty, fines and others dropped by Rs 3.38 billion as against the collection target of Rs 19.34 billion in the first six months of this fiscal. Source: THT