Print Edition - 2015-05-27 | MONEY
Revenue collection falls due to quake
May 26, 2015-
The government missed the revenue collection target by Rs16.38 billion as of mid-May this fiscal year as the quake-battered economy could yield little revenue, the Finance Ministry said Tuesday.
The govenrment had planned to collect Rs329.31 billon during the review period but earnings reached only Rs312.93 billion.
Out of the total revenue, tax revenue stood at Rs282.59 billion and non-tax revenue came to Rs30.34 billion. The total revenue target for the curent fiscal year stands at Rs422.9 billion.
Revenue collection for the period mid-April to mid-May fell short by Rs6.15 billion with income reaching Rs21.47 billion against the target of Rs27.62 billion.
The minsitry said that the government missed the revenue collection target as the payment period for value added tax (VAT) and tax deduction at source was extended until May 21.
Of the total collection as of mid-May, the contribution of VAT stood at 28.91 percent followed by income tax at 21.09 percent, customs duty at 19.57 percent, excise duty at 13.09 percent and non-tax at 9.7 percent. The Department of Customs (DoC) and the Inland Revenue Department (IRD) are the key government offices engaged in collecting revenue. As imports have come down, the collection of revenue from customs offices has also dropped.
According to the DoC, it missed the revenue target by Rs5 billion in the 10th month of this fiscal year.
The customs offices in Tatopani and Rasuwagadhi have remain closed continuously. Last week, the department had brought about 80 containers stuck at the yard of the Tatopani Customs to the Airport Customs in Kathmandu for clearance under police escort. It said that imports through Birgunj Customs had also decreased.
Likewise, IRD expects a downturn in revenue collection in the 11th month as economic activities slowed down in the 10th month following the devastating tremor. The IRD expects to see a revenue collection deficit of Rs11-12 billion at the end of the current fiscal year.
Government officials said that besides a slowdown in economic activities, destroyed tax offices and roads that are necessary for the transportation of cargo also contributed to a slump in revenue growth.
Published: 27-05-2015 07:33