Rise in lending rates hits import, revenue

Published On: February 20, 2017 01:00 AM NPT By: Ritesh Tripathi

BIRGUNJ, Feb 20: The impact of rise in lending rates of bank and financial institutions (BFIs) has been felt in revenue collection. 

Import of vehicles and other luxurious goods has decreased significantly after BFIs raised lending rates, according to Birgunj Customs Office.

“As automobile is the main revenue source, drop in its imports has hit revenue mobilization, Sebantak Pokhrel, chief customs officer of Birgunj Customs Office, said. 

According to the office, revenue collection from 20 main goods decreased in the period between mid-January and mid-February compared to a month earlier. Revenue collection from imports of jeep, car and van has decreased by Rs 1.39 billion compared to last month. Only 431 vehicles in jeep, car and van were imported in the country in the review month, compared to around 1,000 vehicles a month earlier. 

Likewise, the import of double cab pickup, single cabin pickup, auto rickshaw tempo and minibus also declined in the review period. Revenue collection from these vehicles fell by Rs 149 million in mid-February compared to mid-January. Similarly, revenue collection from imports of engine oil also fell by Rs 63 million in mid-February. Import of engine oil fell by nearly 50 percent to 538,004 kilograms in mid February, according to the office.

Import of liquors also fell in the review month. According to the office, 12,514 liters of liquors was imported via Birgunj between mid-Dec and mid-Jan. The customs office had mobilized Rs 33 million in revenue from the import. Such import, however, fell to nil in the review month. 

Revenue collection from coal, tobacco, iron, polythene, generator, makeup items, furniture, paper, amongst other, has also decreased in mid-February as compared to mid-January.

According to Pokhrel, revenue collection in the month was seven percent lower than the target set by the government. The office collected Rs 8.42 billion in mid-February which is lower than the Rs 9.07 billion target set by the government.

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