Government misses revenue target by Rs 4 billion
The government has missed revenue mobilisation target by around Rs 4 billion for the first seven months of the current fiscal year 2013-14.
Tendency of not submitting the details of VAT and income tax has made it difficult for the government to meet its own revenue target, said finance secretary Shanta Raj Subedi at a review meeting of revenue mobilisation at the finance ministry today. "The rise in income tax mobilisation by only 11 per cent has been one of the key reasons behind government's failure in meeting the target," he said, adding that the government mobilised Rs 38 billion income tax in the seven months compared to Rs 34.57 billion in the same period last fiscal year. "However, the government had targeted to mobilise Rs 42 billion from income tax during the period."
The government has, however, been able to mobilise Rs 188 billion – that is 98.20 per cent of the target of Rs 192 billion – revenue in the seven months of the current fiscal year, he added.
The government had been able to mobilise Rs 154 billion revenue in the seven months of the last fiscal year. "The government has met the target in revenue mobilisation in all sectors, except income tax," Subedi, said, adding that customs duty mobilisation stood at Rs 37.62 billion – a rise of 18.78 per cent compared to Rs 31.67 billion in the same period in 2012-13 – likewise, VAT mobilisation increased by 18.82 per cent to Rs 66.94 billion compared to last fiscal year's same period's Rs 47.08 billion. "Excise duty mobilisation increased by 20.33 per cent to Rs 24.26 billion compared to Rs 20.16 billion in the same period of 2012-13."
However, increased growth rate of non-tax revenue has been satisfactory. "The mobilisation of non-tax revenue grew by 40.45 per cent to Rs 23.41 billion compared to Rs 16.67 billion in the same period of last fiscal year," he said.
Of the sectoral contribution, VAT contributes 30 per cent from from last year's 31 per cent, whereas income tax shares 20 per cent, customs 20 per cent and non-tax 12 per cent, and excise duty contributed 13 per cent in the total revenue mobilisation.