Nepal Collects NPR 664 Billion in Revenue by Mid-January; VAT and Excise Show Growth

Kathmandu. The government has collected a total of NPR 664.0251 billion in revenue up to the month of Magh in the current fiscal year 2082/83. According to the details published by the Ministry of Finance, this amount of revenue was collected by Magh 29.

This collection is 3.45 percent higher than the same period last year. As of the end of Magh in the last fiscal year, revenue collection stood at NPR 642.04539 billion.

According to the Ministry, the target for revenue collection by the end of Magh was NPR 813.6312 billion. Only 81.61 percent of the target has been achieved by the end of the seven months. This indicates some improvement in revenue mobilization but shows a large gap between the target and the achievement.

• Status of Revenue by Head

1. Customs Duty

The government had set a target of collecting NPR 170.50 billion under customs duty by the end of Magh. Only NPR 135.32 billion has been collected. This is only 79.37 percent of the target. However, compared to NPR 125.8507 billion collected in the same period last year, this year shows a growth of 7.53 percent. Under customs, a growth of 7.44 percent was seen in imports and 204.93 percent in exports.

2. Value Added Tax (VAT)

Growth of 7.63 percent was also seen in the collection of Value Added Tax (VAT), considered the main base of revenue. Against a target of NPR 217.21 billion up to the review period, NPR 196 billion has been collected. Last year, NPR 182.60 billion was collected during the same period. Under VAT, a growth of 7.80 percent was recorded in production, sales, and services, and 7.42 percent in imports.

3. Excise Duty

Excise duty collection showed double-digit improvement. While NPR 95.09 billion was collected up to the end of Magh last year, it increased by 10.88 percent this year to reach NPR 105.43 billion. The government's target for this period was to collect NPR 115.1477 billion. The Ministry stated that there was a growth of 10.05 percent in excise duty from domestic production and 13.14 percent from imports.

4. Decline in Income Tax and Non-Tax Revenue

However, a decline was observed in Income Tax and other revenue (non-tax). While NPR 159.96 billion was collected under Income Tax up to the end of Magh last year, it decreased by 0.81 percent this year to only NPR 154.66 billion. The target for Income Tax was NPR 220.0754 billion. Similarly, non-tax revenue decreased by 15.81 percent this year to only NPR 65.0903 billion, compared to NPR 77.2103 billion collected last year. The target for non-tax revenue was NPR 87.1087 billion.

5. Education Service Fee and Others

Encouraging growth was seen in the Education Service Fee and other minor headings. Revenue in this head increased by 61.07 percent this year to NPR 3.4475 billion, compared to NPR 2.14 billion collected last year.

Status of Departmental Performance

Looking at the departmental level, the Customs Department collected NPR 278.42 billion in revenue up to the end of Magh. This is 8.04 percent higher than last year. The Customs Department was given a target of collecting NPR 332.11 billion for this period. This collection represents 83.84 percent of the target. On the other hand, the Inland Revenue Department collected NPR 320 billion, showing a growth of 4.21 percent. The Inland Revenue Department was given a target of collecting NPR 394.12 billion for this period. This revenue collection accounts for 81.36 percent of the target.