Revenue collection up 27 pcThe government’s revenue collection exceeded the target by Rs 45.97 billion and stood at Rs 611.76 billion during the last fiscal year indicating the improved taxation system and expansion in revenue base.
The government’s revenue collection exceeded the target by Rs 45.97 billion and stood at Rs 611.76 billion during the last fiscal year indicating the improved taxation system and expansion in revenue base. The collected revenue is 108 percent of the target of Rs 565.89 billion set by the Finance Ministry for the fiscal year 2016-17. The revenue mobilisation attained the growth of around 27 percent in the last fiscal year compared to Rs 482.17 billion in the previous year.
Contribution of tax revenue in total revenue of last fiscal year has been Rs 553.90 billion which accounts for 90.54 percent of the total collection. Likewise, non-tax revenue contributed Rs 57.86 billion in total revenue mobilisation.
Finance Minister Gyanendra Bahadur Karki cited reforms on tax administration, higher customs valuation of imports and serious effort to recover dues as the major reason behind the revenue collection exceeding the target.
“There has not been major change in policies related to taxation,” said Karki addressing the event organised by the finance ministry to disseminate information on revenue mobilisation on Tuesday. “The achievement is mainly the result of operational efficiency.” He attributed expansion of tax range, improvement in compliance of the taxes, introduction of technology based services in tax offices, leakage control and administrative reforms among others as other reasons behind the revenue growth. “Growth in number of tax payers, improved economic activities because of higher economic growth of 6.9 percent, investment in reconstruction works, improved investment climate in absence of strike and lockouts also contributed in revenue growth,” Karki added.
The value added tax (VAT) worth Rs 161.12 billion in total deposit mobilisation accounts for 26.33 percent in total collection.
Similarly, income tax has been the second biggest component in total revenue, contributing Rs 151.36 billion and accounting for 24.74 percent in total collection whereas contribution of custom duty stood third with Rs 112.22 billion. On the other hand, contribution from the excise duty remained at Rs 84.23 billion.
Revenue collection under the VAT, income tax, custom duty and excise duty in the last fiscal year increased by 31.63, 28.92, 36.59 and 28.51 percent respectively compared to the collection in the previous year.
According to Karki, the ministry will adopt stringent measures in coming days to meet the revenue target of Rs 730.05 billion set for the fiscal year 2017-18. “I am not making this statement just for the sake of making statement. I will not hesitate to take tough measure,” he said.
Fiscal Year Revenue (Rs)
2016-17 611.76 b
2015-16 482.17 b
2014-15 405.85 b
2013-14 356.85 b
2012-13 296.01 b