KATHMANDU, July 18: The government has achieved an impressive growth in tax revenue that increased by 31.54 percent to Rs 553.9 billion in the last fiscal year.
Tax revenue grew at 21 percent in last fiscal year and the average growth rates were only at 22 to 23 percent in the last few years, according to Inland Revenue Department.
Tax revenue covers 90.54 percent of the government’s total revenue mobilization.
Acting Director General of IRD Chandra Kala Paudel informed that this year’s growth rate is impressive compared to the average growth rate of the past decade. This shows that the targeted revenue growth for the current fiscal year is also achievable. The non-tax revenue collection was Rs 57.86 billion.
Government has collected a total of Rs 611.76 billion in revenues in the last fiscal year, which was 108.11 percent against the target of Rs 565 billion. It was an increase by about 27 percent compared to the previous fiscal year, according to the preliminary statistics unveiled by the Ministry of Finance on Tuesday.
Collection of the custom tax grew by 36.59 percent to Rs 112.22 billion and the growth is the highest amongst the type of revenue tax.
Likewise, value added tax, income tax and excise duty collection grew by 31.63, 28.92 and 28.51 percent to Rs 161 billion, Rs 151 billion and Rs 84 billion, respectively.
The achievement in the tax growth is impressive despite the fact that tax rates are unchanged over the years, said Finance Minister Gyanendra Bahadur Karki.
The government has targeted collection of Rs 730 billion revenues in the current fiscal year and the growth target is 19 percent.
Minister Karki said that improvement in spending for the works of reconstruction and boost in economic activities in the current fiscal year, together with the government’s additional efforts for tax compliance, will help to achieve the revenue target.
Tax rates for this fiscal year are unchanged because the budget was tabled when the election code of conduct was in place.