According to the Ministry of Finance (MoF), only Rs 23.63 billion or 91.08 percent of the target was raised through VAT - the largest source of revenue - during the quarter ending mid-October. The government had set the target of mobilizing VAT worth Rs 25.95 billion during the first quarter.[break]
Similarly, collection of customs duty - the second largest source of revenue - also fell short of the target. The government mobilized Rs 16.25 billion through customs duty which is 92.53 percent of the target set for the period.
Under customs duty, the government collects import tax, export tax, agriculture reform tax and other customs related taxes.
Similarly, Rs 10.10 billion was raised through excise duty - the third largest revenue source of the government.
The collection was two percent more than the target set by the government. Collection of income tax was recorded at Rs 9.18 billion, four percent more than the target.
Under the income tax, the government collects business income tax, house rent tax and interest tax.
However, mobilization of registration fee and vehicle tax exceeded the target by 42.13 percent and 110.07 respectively, to Rs 1.33 billion and Rs 1.48 billion.
Thanks to unsatisfactory progress in mobilization of revenue in major headings, collection of tax revenue was limited to Rs 65.23 billion, or 96.56 percent of the target, during the quarter.
However, to the relief to the government, non-tax revenue collection reached Rs 9.44 billion, or 214.95 percent, of the target. The significant rise in non-tax revenue supported the total revenue collection that reached Rs 72.43 billion, four percent more than the target set for the quarter.
Though revenue mobilization third month of the current fiscal year ending mid-October increased by 112 percent to Rs 27.24 billion, progress in revenue collection in major heading was well below the target.
The MoF said customs duty collection was limited to 96.48 percent of the targeted Rs 5.55 billion during the month. Similarly, mobilization of income tax during the review month was limited to 95.79 percent of the targeted Rs 2.79 billion.
The government raised Rs 7.58 billion through VAT during the review month which is 100.22 percent of the targeted amount. Similarly, excise duty collection during the month was recorded at Rs 4.01 billion, 16.91 percent more than the target set for the month.
Total tax revenue collection during the period was limited to Rs 2.10 billion which is 97.43 percent of the target. Non-tax revenue collection, however, increased by 117.92 percent to Rs 3.03 billion.
Speaking at a meeting organized to review revenue collection on Sunday, Finance Minister Shankar Prasad Koirala directed revenue officials to effectively monitor the revenue officials with low performance.
On the occasion, Finance Secretary Shanta Raj Subedi expressed dissatisfaction over slow growth in mobilization of VAT, customs duty and income tax during the first three months 2013/14.
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