KATHMANDU, FEB 01 - 2013
The government collected Rs 134.57 billion in revenue during the first half of the current fiscal year, surpassing the target by 2.04 percent.
According to the Finance Ministry, the government earned Rs 27.07 billion in customs
duty, Rs 40.13 billion in value added tax (VAT), Rs 30.64 billion in income tax and Rs 17.69 billion in excise duty.
Likewise, income from registration fees reached Rs 1.74 billion, vehicle tax Rs 2.15 billion and non-tax sources such as royalty and dividends Rs 14.5 billion.
The total intake was up 21.2 percent year on year. The Finance Ministry said that tax revenue jumped 25.72 percent while non-tax revenue declined 6.56 percent during the period.
Revenue collection may have climbed during the first six months, but the ministry said it was due more to an increase in imports, and thus not a cause for excessive jubilation. Chief of the ministry’s Revenue Management Department Rajan Khanal said collection of VAT and excise duty under the Inland Revenue Department was not as high as that from the customs offices.
During a review meeting of the revenue collection status of the first half of the fiscal on Thursday, Khanal said that the rate of revenue collection had been in decline in the latter part of the period. “The reason of this drop should be analyzed,” the ministry said in a press release.
He added that low spending by the public sector would make revenue collection challenging in the days ahead. “A change in the exchange rate of the US dollar could also affect customs revenue in the future,” he said.
Meanwhile, speaking at the interaction, director general of the IRD Tanka Mani Sharma said the level of VAT collection was not satisfactory due to a fall in capital expenditure. “Revenue collection is challenging as the revenue policy could not be changed in the absence of a full budget,” he added.
Finance secretary Shanta Raj Subedi directed the offices under the Finance Ministry to move ahead with a clear work plan in order to collect more revenue.
He also instructed them to adopt specific measures to increase inland VAT, take stringent action to raise VAT collection from the service sector, work to bring untouched sectors under the tax net and control leakages through a partnership between the IRD and the Department of Revenue Investigation.
National Planning Commission vice-chairman Dipendra Bahadur Kshetry, Nepal Rastra Bank governor Yubaraj Khatiwada and economic advisor to the Finance Ministry Sri Ram Poudel, among others, took part in the review meeting.
Source: The Kathmandu Post
The government collected Rs 134.57 billion in revenue during the first half of the current fiscal year, surpassing the target by 2.04 percent.
According to the Finance Ministry, the government earned Rs 27.07 billion in customs
duty, Rs 40.13 billion in value added tax (VAT), Rs 30.64 billion in income tax and Rs 17.69 billion in excise duty.
Likewise, income from registration fees reached Rs 1.74 billion, vehicle tax Rs 2.15 billion and non-tax sources such as royalty and dividends Rs 14.5 billion.
The total intake was up 21.2 percent year on year. The Finance Ministry said that tax revenue jumped 25.72 percent while non-tax revenue declined 6.56 percent during the period.
Revenue collection may have climbed during the first six months, but the ministry said it was due more to an increase in imports, and thus not a cause for excessive jubilation. Chief of the ministry’s Revenue Management Department Rajan Khanal said collection of VAT and excise duty under the Inland Revenue Department was not as high as that from the customs offices.
During a review meeting of the revenue collection status of the first half of the fiscal on Thursday, Khanal said that the rate of revenue collection had been in decline in the latter part of the period. “The reason of this drop should be analyzed,” the ministry said in a press release.
He added that low spending by the public sector would make revenue collection challenging in the days ahead. “A change in the exchange rate of the US dollar could also affect customs revenue in the future,” he said.
Meanwhile, speaking at the interaction, director general of the IRD Tanka Mani Sharma said the level of VAT collection was not satisfactory due to a fall in capital expenditure. “Revenue collection is challenging as the revenue policy could not be changed in the absence of a full budget,” he added.
Finance secretary Shanta Raj Subedi directed the offices under the Finance Ministry to move ahead with a clear work plan in order to collect more revenue.
He also instructed them to adopt specific measures to increase inland VAT, take stringent action to raise VAT collection from the service sector, work to bring untouched sectors under the tax net and control leakages through a partnership between the IRD and the Department of Revenue Investigation.
National Planning Commission vice-chairman Dipendra Bahadur Kshetry, Nepal Rastra Bank governor Yubaraj Khatiwada and economic advisor to the Finance Ministry Sri Ram Poudel, among others, took part in the review meeting.
Source: The Kathmandu Post
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