Kathmandu, October 23
The government has exceeded revenue collection target in the first quarter of the ongoing fiscal year with revenue growth of 41.7 per cent compared to the corresponding period of the previous fiscal. The government has collected a total of Rs 197.87 billion against the target of Rs 191.62 billion, according to the Revenue Division under the Ministry of Finance (MoF).
The government exceeded revenue collection target under each major tax heading except value added tax (VAT) and income tax. VAT, income tax and customs tariff are the major sources of tax revenue. Among them, VAT is the major source of revenue and the collection under VAT stood at Rs 61.02 billion against the target of Rs 65.59 billion in the first quarter. Similarly, collection under customs tariff stood at Rs 42.49 billion, whereas the target for the customs duty was Rs 38.94 billion, as per the Finance Ministry.
Likewise, the government collected Rs 33.82 billion from excise exceeding the target of Rs 29.29 billion in the review period. A shortfall was witnessed in collection of income tax as the government collected Rs 27.03 billion from income tax against the target of Rs 27.7 billion.
Similarly, the government was able to collect Rs 3.7 billion from vehicle tax, Rs 850 million from registration fees and Rs 306.43 million from health service tax. The federal government has not set any specific target under registration, health service and vehicle tax as these taxes are also handed over to the sub-national governments.
The government has also exceeded the revenue collection target under the education service tax as the collection under this heading stood at Rs 342.7 million against the target of Rs 192.5 million, as per the MoF. Similarly, the government collected Rs 6.63 billion against the target of Rs 4.18 billion under other tax heading.
Meanwhile, the government witnessed a shortfall in the collection of non-tax as the collection under non-tax stood at Rs 21.67 billion against the target of Rs 25.73 billion.
The government has raised the revenue collection target by 29.5 per cent in the current fiscal to Rs 945.56 billion compared to Rs 730.05 billion of the previous fiscal year. Revenue growth in the first quarter witnessed an encouraging growth of 41.7 per cent as the government’s revenue collection in the first quarter of the previous fiscal year was at Rs 139.65 billion.
Comparative figures
| Heading | Target | Collection |
| VAT | Rs 65.59bn | Rs 61.02bn |
| Customs tariff | Rs 38.94bn | Rs 42.49bn |
| Excise | Rs 29.29bn | Rs 33.82bn |
| Income tax | Rs 27.7bn | Rs 27.03bn |
| Registration fees | Rs 850m | |
| Vehicle tax | Rs 3.7bn | |
| Health service tax | Rs 306.43m | |
| Education service tax | Rs 192.5m | Rs 342.7m |
| Other tax | Rs 4.18bn | Rs 6.63bn |
| Non-tax | Rs 25.73bn | Rs 21.67bn |
The post Revenue growth of 41.7pc seen in Q1 appeared first on The Himalayan Times.
Written by Nikki Hamal
This news first appeared on https://thehimalayantimes.com/business/revenue-growth-of-41-7pc-seen-in-q1/ under the title “Revenue growth of 41.7pc seen in Q1”. Bolchha Nepal is not responsible or affiliated towards the opinion expressed in this news article.
