Of this amount, Rs 23.37 billion was raised in the eighth months of the current fiscal year spanning from February 11 to March 13, data released by the Ministry of Finance (MoF) on Thursday show.[break]
The biggest revenue generator for the government during the eight-month period was value added tax (VAT). The government collected Rs 53.49 billion in VAT during the period, up 16.97 percent from the same period last fiscal year, making a contribution of 30 percent to the government´s entire revenue collection.
The next biggest revenue generator for the government was income tax. The government raised Rs 36.72 billion as income tax in the first eight months of the current fiscal year, against Rs 27.74 billion raised in the same period last fiscal year.
Close on the heels was customs tax. Through this, the government raised Rs 36.46 billion in the first eight months, up from Rs 26.11 billion in the same period last fiscal year.
Similarly, the government collected Rs 23.08 billion through excise duties -- Rs 21.18 billion as non-tax revenue, Rs 6.24 billion as registration fee and vehicle tax, and Rs 190 million as education service fee.
“Although revenue collection so far has been satisfactory, the Inland Revenue Department has not been able to meet the targets for VAT and income tax collection set for this fiscal year. The department should immediately identify reasons for this and act accordingly,” an MoF statement quoted Finance Secretary Santa Raj Subedi as saying.
MoF officials told Republica VAT collection has fallen short of the target this year as it was created based on last fiscal year’s collection when the Inland Revenue Department had slapped fines on firms and individuals found guilty of evading VAT.
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