Nepal's Revenue Collection Reaches NPR 747.28 Billion by Mid-February, Showing 3.75% Growth Year-on-Year

Kathmandu. The government has collected a total revenue of NPR 747.28 billion up to the month of Falgun in the current fiscal year 2082/83. According to the details published by the Ministry of Finance, this amount of revenue was collected by Falgun 30.

This collection is 3.75 percent higher than the same period last year. Revenue collection up to the end of Falgun in the last fiscal year was NPR 720.24 billion.

Furthermore, the government collected NPR 82.25 billion in revenue in the month of Falgun alone.

According to the Ministry, the target for total revenue collection by the end of Falgun was NPR 910.20 billion. The Ministry of Finance stated that only 82.10 percent of the target has been achieved by the end of the eight months.

Status of Revenue by Head

1. Customs Duty

By the end of Falgun, the government had set a target to collect NPR 195.90 billion under customs duty. However, only NPR 144.50 billion has been collected, which is only 73.76 percent of the target.

Nevertheless, this shows an 8.12 percent increase compared to the NPR 144.18 billion collected in the same period last year. An increase of 8.04 percent was seen in imports under customs, and 225.65 percent in exports.

2. Value Added Tax (VAT)

Collection under Value Added Tax (VAT), considered the main base for revenue, also showed a growth of 7.35 percent. During the review period, a target of NPR 246.43 billion was set, and NPR 225.53 billion has been collected.

Last year, NPR 210.09 billion was collected during the same period. VAT saw a growth of 7.13 percent in production, sales, and services, and 7.51 percent in imports.

3. Excise Duty

Excise duty collection showed double-digit improvement. While NPR 108.87 billion was collected by the end of Falgun last year, it increased by 10.44 percent this year to NPR 120.36 billion.

The government's target for collection during this period was NPR 133.21 billion. The Ministry stated that excise duty on domestic production grew by 10.01 percent, and on imports by 11.06 percent.

4. Decline in Income Tax and Non-Tax Revenue

However, a decline was observed in Income Tax and other revenues (non-tax). Income tax collection decreased by 1.42 percent this year to NPR 170.80 billion, compared to NPR 173.26 billion collected by the end of Falgun last year. The target for income tax was NPR 237.80 billion.

Similarly, non-tax revenue (other revenue) decreased by 13.31 percent this year to NPR 70.69 billion, compared to NPR 81.54 billion collected last year. The target for non-tax revenue was NPR 93.77 billion.

5. Education Service Fee and Others

There was an encouraging increase in the Education Service Fee and other small headings. Collection under this head increased by 66.62 percent this year to NPR 3.97 billion, compared to NPR 2.38 billion collected last year.

Status of Departmental Performance

Looking at the departmental level, the Department of Customs collected NPR 319.94 billion in revenue by the end of Falgun. This is 1.48 percent higher than last year. The Customs Department was given a target of collecting NPR 378.16 billion for this period. This collection represents 79.31 percent of the target.

On the other hand, the Inland Revenue Department collected NPR 356.63 billion, showing a growth of 3.90 percent. The Inland Revenue Department was given a target of collecting NPR 438.26 billion for this period. This revenue collection accounts for 81.38 percent of the target.