First Business News Portal in English from Nepal
KATHMANDU: Internal revenue collection has failed to meet the target set for the current fiscal year. In the first five months of the current fiscal year 2079/080, the revenue collection is 13.63 percent less than the target, according to the Internal Revenue Department.
The department had set a goal of collecting internal revenue equal worth Rs. 174.37 billion but during this period, only Rs. 150.5 billion has been collected, which is about Rs. 24 billion less than the target.
Likewise, during the same period no target has been met in the income tax, value added tax (VAT) and excise duty revenue collection. The targeted collection of income tax has reached 80.61 percent, value added tax to 82.47 percent and excise duty to 97.9 percent by the end of first five months.
Meanwhile, health care tax and education tax have been raised more than the target. According to the IRD, the global scenario and the impact of internal problems on the economy caused obstruction to revenue collection.
IRD Director Raju Prasad Pyakurel says that the department set the target by estimating the normal situation but could not meet the target due to an extraordinary situation.
Due to sluggish capital market and real estate transactions income tax collection has been affected this year.
Similarly, the department also recognizes that the revenue collection has decreased due the liquidity crisis in banks, non-availability of working capital loans, restrictions on the import of goods, low capital expenditure of the government.
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