Published On: November 26, 2020 05:30 PM NPT By: Republica | @RepublicaNepal
KATHMANDU, Nov 26: The ratio of revenue mobilisation to the gross domestic product (GDP) stood at 22.33 percent during fiscal year 2019/20 following a slump in revenue collection due to COVID-19. This is less than 1.65 percent point as compared to the previous year.
The annual report unveiled by the Inland Revenue Department (IRD) shows that the government collected revenue worth Rs 793.78 billion while the GDP at current consumer price remained Rs 3.76 trillion in the last fiscal year.
As per the report, the ratio of revenue mobilisation to GDP was 19.1 in the fiscal year 2014/15, which successively grew to 23.98 percent in 2018/19. Over the period, the tax revenue collection also escalated more than double to Rs 738.60 billion.
However, with an impact of the ongoing pandemic, the collection of tax revenue came down 5.22 percent to Rs 700.05 billion in 2019/20. As a result, the ratio of tax revenue to GDP was down to 18.58 percent last year as compared to 21.35 percent in the previous year.
Share of value added tax, which contributes the maximum amount in the tax revenue, has also come down to 5.95 percent from 6.97 percent of the GDP. However, the contribution of income tax in the GDP rose to 5.84 percent from 5.61 percent, according to the IRD.
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