According to revenue statistics obtained by myrepublica.com, the revenue collection during the period remained at Rs 4.49 billion, lower than Rs 5.58 billion mobilized during the same period last year. [break]
The total revenue collection had recorded a whopping rise of 73.1 percent rise last year compared to figures of previous year.
Concerned government officials blamed lack of timely announcement of full-fledged budget, continuing chock in bank´s lending and sluggish business activities for the decline. Despite the unexpected beginning, the officials, however, seemed confident that they will be able to make up the missed target in the days to come.
Officials at the Revenue Division pointed their figures toward lack of full-fledged budget that deprived them from making annual adjustments in customs and excise duties behind decline in revenue mobilization.
"The hefty rise in collect recorded in the first month of the last year was due to the adjustments on the previous year´s budget. Since such adjustments have not been possible this year in the absence of a full-fledged budget, chances of similar growth trends seem less likely until a new budget comes into effect," he said.
Chief of Birgunj Customs Lawanya Kumar Dhakal also said that slow imports seen in the revenue generating items like private vehicles, fuel and construction materials like billet, and third country imports have adversely impacted the revenue collection at the Birgunj Customs, which alone generates 60 percent of the total customs revenue collection in the country.
However, he was quick to add that the imports of revenue generating items are gradually picking up lately.
Since the liquidity position of lending financial institutions has remarkably increased lately as the commercial banks alone have been able to lure additional deposits of Rs 25 billion in the last month, bankers say they have opened their lending purse again for almost all sectors.
Not only for vehicles, we have resumed extension of loans to all sectors to those borrowers having sources of income to repay loans, said Rajan Singh Bhandari of Nepal Bankers´ Association.
Officials at the Ministry of Finance are also optimistic that despite the negative growth in revenue collection, they will be able to make the loss by the end of the month when taxpayers will start depositing income tax and VAT to the government account.
Apart from that, resumption of bank financing to vehicles and construction sectors, which will increase imports of construction materials like billet and clinkers, will largely help to put the revenue growth back on track, said an MOF official.
Related story
Diversifying Government Revenue
