“The collection was a rise of 22.2 percent over what we had mobilized in 2010/11,” said Finance Secretary Krishna Hari Baskota. He attributed the rise in collections to better mobilization of revenue from income tax and customs duty. [break]
The finance ministry was trailing the target till the 11th month of the fiscal year.
Breakdown of collection shows, value added tax (VAT) generated Rs 71.97 billion in revenue during the year. Though its collection remained short of annual target, which was set at Rs 72.74 billion, contribution from VAT stood at 29.5 percent in overall revenue collection.
Income tax, the second biggest revenue spinner, generated Rs 52.55 billion during the year, exceeding the target by more than a billion rupees. Its share in overall revenue stood at 22.7 percent.
“This better than anticipated collection of income tax indicates our tax base is gradually widening,” said Baskota.
Likewise, the finance ministry collected Rs 43.41 billion from customs duty - the third largest revenue generator - during the last fiscal year. The collection was above the target by almost Rs 2 billion, according to a MoF statement.
The government further collected Rs 30.37 billion in excise duty, posting a growth of 13.5 percent over previous year´s collections.
The breakdown further reveals that the government mobilized another Rs 7.96 billion from registration fee and vehicle tax. Collections from non-tax sources too stood at Rs 37.88 billion, said the statement.
With the rise in collections, country´s revenue-GDP ratio in 2011/12 jumped to 15.5 percent. In 2010/11, the ratio was 14.59 percent.
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