Govt meets last year’s revenue target
By A Staff Reporter
Kathmandu, Aug. 16: The government was successful to meet the target of customs duty on exports, excise duty on imports and non-tax revenue in the last fiscal 2018/19. But the annual revenue target saw negative results due to less revenue mobilisation in income tax.
Overall revenue mobilisation last year was 99.95 per cent of the target and up by 22.61 on an annual basis.
The government collected Rs. 859.59 billion against the target of Rs. 860 billion, according to the Ministry of Finance (MoF).
The Department of Customs (DoC) and Inland Revenue Department (IRD) failed to meet their targets on imports revenue, infrastructure tax, Value Added Tax (VAT), excise duty and income tax.
Income tax has the largest share in the total government revenue collection. The government has set the income tax target at Rs. 209.68 billion for the IRD but it could collect only Rs. 194.28 billion, 92.66 per cent of the target. But the total income tax collection is up by 21.5 per cent compared to the previous fiscal year 2017/18.
Rs. 155.36 billion customs duty was collected last fiscal against the target of Rs. 164.52 billion. The collection is 94.43 per cent of the target and 12.76 per cent up as compared to Rs. 137.78 billion of the Fiscal Year 2017/18. The DoC collected Rs. 137 billion against Rs. 145.27 billion target and meet 94.3 per cent of the target.
In its annual report, the Ministry said that only duties on exports saw an exponential growth with 131.6 per cent growth on year-on-year basis compared to the previous fiscal 2017/18 with 283.6 per cent collection against the target of Rs. 80.3 million.
Spokesperson at the DoC Shishir Ghimire said that the increased export duty was the result of the increment in the export of palm oil. The country exported about 95.6 million kilos of palm oil worth Rs. 10 billion.
Likewise, VAT was collected slightly more than 96 per cent of the target of Rs. 250.88 billion. The VAT on production, sales and service was down by 4.3 per cent with Rs. 89.55 billion collection. Excise duty collection was 97.5 per cent of the annual target of Rs. 124.88 billion. Similarly, the government collected Rs. 44.80 billion in other tax headings, which is up by 119 per cent compared to the collection of previous fiscal. Significant achievements were made in the area of non-tax revenue. About Rs. 100.59 billion non-tax revenue was collected against Rs. 83.10 billion target.
However, the revenue mobilisation on amount basis is up in every tax heading in comparison to the previous fiscal.
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