Kathmandu, Aug 24: Nepal’s government revenue remains heavily dependent on customs as the economy continues to rely on imports. Customs accounted for the largest share of revenue collected in the first month of the current fiscal year.
The government collected Rs 92.22 billion in total revenue in Shrawan, of which Rs 40.01 billion, or 46.67 percent, came from customs. The Customs Department had set a monthly target of Rs 43.97 billion, achieving 91 percent of it. The annual customs revenue target stands at Rs 628.07 billion.
The government says it collected more than Rs 105 billion in revenue during the first 35 days of the fiscal year, compared with Rs 93.99 billion during the same period last year. The Inland Revenue Department expects collections to improve in Bhadra and Ashoj as tax administration becomes more technology driven and taxpayers receive greater incentives.
Despite some improvement in overall revenue growth, collections from income tax and value added tax, considered key indicators of domestic economic activity, remain below target.
VAT collection rose 8.2 percent year on year to Rs 14.82 billion in Shrawan from Rs 13.61 billion last year. However, it was 21 percent below the monthly target of Rs 16.62 billion.
Excise duty collection increased 5 percent to Rs 9.85 billion from Rs 9.4 billion last year, but remained 21 percent below the Rs 12.34 billion target.
Income tax showed the weakest performance. Collection fell 12 percent year on year to Rs 14.84 billion from Rs 16.52 billion. It was nearly 30 percent below the monthly target of more than Rs 21 billion.
House rent income tax rose marginally by 1.5 percent, while tax on interest income fell 3.2 percent to Rs 5.48 billion.
Chartered accountant Sheshmani Dahal said it was too early to assess the economy based solely on the first month’s revenue. He said the impact of several budget measures would take time to appear in the market.
Revenue collection has fluctuated in recent years. It stood at Rs 100 billion in Shrawan of FY 2078/79, fell to Rs 79 billion in FY 2079/80, and reached Rs 78.87 billion in FY 2080/81. Collections then rose to Rs 94.84 billion in FY 2081/82, fell to Rs 86.47 billion in FY 2082/83, and increased to Rs 92.22 billion in the current fiscal year.
People’s News Monitoring Service
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