Government misses customs revenue collection target by Rs 15.97 bn

Kathmandu October 15- The government has failed to meet almost 50 per cent of the customs revenue collection target due to the protests in the Tarai that have prolonged for two months an indication that the state’s income will take a hit this fiscal year. The Department of Customs (DoC) had set revenue collection target of Rs 32.17 billion for the Nepali months of Bhadra and Asoj (mid-August to mid-October). But as of Asoj 26 (October 13), different customs offices across the country had raised only Rs 16.18 billion in revenue, show the DoC data.

Inability to meet the target for two consecutive months is expected to affect the income of the government this fiscal year. This is because customs duty makes a contribution of around 20 per cent to the government’s revenue, while almost half of the value added tax and a good chunk of excise duties are also raised from customs points.

Yet, DoC Director General Sishir Kumar Dhungana is hopeful about recovery in the latter part of the fiscal year which surely depends on the improvement of the situation in the Tarai. Source: THT