KATHMANDU, April 13: The government was able to collect revenue worth 92.50 percent of the targeted amount in the first eight months of the current fiscal year.
According to the Ministry of Finance (MoF), the government collected revenue worth Rs 571.20 billion during mid-July and mid-March against the target of Rs 617.53 set for the period. The amount collected during the review period this year was 4.45 percent more than that of the amount in the same period last year. An increase in economic activities with the declining impacts of the COVID-19 had given some respite in the revenue collection, said the MoF.
The MoF record shows that the collection of customs duty was 98.86 percent of the targeted amount of Rs 127.62 billion under the heading. The government achieved complete success in the income tax collection target of Rs 128.18 billion. Similarly, the collection of value-added tax stood at 91.14 percent of the targeted amount of Rs 192.05 billion.
The collections of excise duty and non-tax revenue, however, posted a dismal picture. During the review period, excise duty collection was 86.26 percent of the targeted amount of Rs 97.44 billion whereas only 74.76 percent of targeted Rs 58.22 billion was collected in non-tax headings.
The government in recent days has been relying more on the public borrowing to manage adequate financial funds after undergoing pressure in the revenue collection. On one hand, the government is compelled to manage medical safety kits and import the vaccine to fight against coronavirus, while it has been unable to curb unproductive expenses by the government offices.
According to the MoF, the revenue collected in the first eight months is around 60 percent of the earmarked government revenue for this fiscal year. The government has targeted to collect Rs 1.011 trillion in tax and non-tax revenues in 2020/21.