- Revenue collection has maintained a consistent upward trend surging 30.5 percent during the first seven months of the current fiscal year.
According to the Ministry of Finance, revenue soared to Rs. 94.28 billion during the period mid-July to mid-Feb compared to Rs. 72.26 billion during the same period last year.
The government aims to raise Rs. 176.5 billion this year with an average monthly growth rate of 24 percent. Revenue collection during the period under review has exceeded the target of Rs. 90.41 billion by Rs. 3.87 billion.
Revenue has been increasing steadily from the last fiscal year. Revenue Secretary at the Finance Ministry Krishna Hari Baskota said all the sources of revenue were making significant progress in collection.
Although enforcement of value added tax (VAT) has been the biggest challenge since its inception, Baskota said that collection of VAT was also impressive during the seven months.
VAT was the biggest contributor to revenue amounting to Rs. 29 billion. Tentative contributions of other headings are Rs. 19 billion from customs duty, Rs. 17 billion from income tax, Rs. 13 billion from excise duty, Rs. 11.5 billion from non-tax measures, Rs. 3.5 billion from registration fees and Rs. 2 billion from vehicle tax.
The period mid-December to mid-January saw the highest growth in revenue amounting to Rs. 21.08 billion.
The government has said that observance of Tax Participation Year has also contributed greatly to rising revenue. About 80,000 new taxpayers have taken permanent account numbers becoming recognised taxpayers. The government aims to added 200,000 new taxpayers this year.
Revenue growth trend (FY 2009/10)
Months Revenue Collection (Rs. in billions)
Mid-July—Mid August 11.74
Mid-August—Mid-Sept 22.55
Mid-Sept—Mid-Oct 34.32
Mid-Oct—Mid-Nov 46.69
Mid-Nov—Mid-Dec 58.60
Mid-Dec—Mid-Jan 79.68
Mid-Jan—Mid-Feb 94.28