News

Govt on track to exceed revenue collection target this fiscal

June 22, 2017

The Himalayan Times, 22 June 2017 

The government has already collected 93 percent of the annual revenue collection target of Rs 565.9 billion in the first 11 months of this fiscal.

The revenue collection in the first 11 months stood at Rs 527.39 billion, exceeding the set target by Rs 33.85 billion, as income tax collection surpassed the target substantially. This was on the back of Ncell, a telecommunication service provider, filing outstanding tax dues worth Rs 13.6 billion.

A total of Rs 120 billion was collected under income tax against the target of Rs 99.09 billion in the review period.

Quick look  
Heading Target Collection
Value added tax Rs 184.84bn Rs 144.92bn
Income tax Rs 99.09bn Rs 120bn
Customs duty Rs 94.27bn Rs 102.63bn
Excise Rs 71.95bn Rs 77.76bn
Health service tax Rs 0.92bn Rs 0.8bn
Education service tax Rs 0.68bn Rs 0.67bn
Registration fees Rs 13.34bn Rs 17.18bn
Vehicle tax Rs 7.16bn Rs 8.085bn
Other tax Rs 8.61bn Rs 14.66bn
Non-tax Rs 48.67bn Rs 40.69bn

Though overall revenue collection exceeded the target, there was still a shortfall under value-added tax (VAT), a major source of revenue for the government. The government collected Rs 144.92 billion from VAT against target of Rs 148.84 billion in the review period, as per the Revenue Division under the Ministry of Finance (MoF).

Similarly, customs tariff and excise collection also surpassed the target by Rs 8.36 billion and Rs 5.81 billion, respectively, to stand at Rs 102.63 billion and Rs 77.76 billion. A shortfall in education and health service tax was witnessed in the review period as a collection under these headings stood at Rs 0.67 billion and Rs 0.8 billion against the target of Rs 0.68 billion and Rs 0.92 billion, respectively. Likewise, Rs 8.08 billion was collected through vehicle tax against a target of Rs 7.16 billion.

Registration tax collection also exceeded target to stand at Rs 17.18 billion against a target of Rs 13.34 billion as transactions of land boomed after the earthquake. The government collected Rs 14.66 billion from other tax heading and Rs 40.69 billion under non-tax heading. The government missed non-tax revenue collection target, which was set at  Rs 48.67 billion for the review period.