Due to low non-tax revenue mobilisation, the government seems not to meet the revenue target for the current fiscal year, too.
According to the Finance Ministry, the government has been able to mobilise Rs 43.83 billion by the end of the first three months of the current fiscal year. "The revenue mobilisation is only 16.8 per cent higher compared to the same period of the last fiscal year," according to the Finance Minister that has held an evaluation meeting today.
The meeting led by the Finance Minister Barsha Man Pun brainstormed on ways to increase the revenue mobilisation and non-tax revenue that has seen slow growth recently.
Finance Secretary Krishna Hari Baskota, on the occasion, asked the officials to actively involve in plugging the loopoholes in revenue leakages. "Prepare a work plan and be serious on meeting the revenue target," he said, adding that the ministry has to widen the tax net.
Similarly, Finance Minister asked the officials to finalise the investigation on VAT default case. "Though the import has pushed the customs revneue mobilistion up, it will have no positive impact on economy," he said, adding that the import substitution is a must to improve exports and create employment.
The VAT has as usual the highest contribution in the revenue mobilisation as it contributed Rs 16.73 billion, followed by Customs (Rs 9.54 billion), Excise (Rs 6.91 billion), Income Tax (Rs 5.64 billion), and Registration, Vehice and Non-tax (Rs 5.1 billion).
The goverment has targetted to mobilise Rs 246 billion revenue in the current fiscal year. Last fiscal year the government failed to meet its revenue target as it had targetted to mobilise Rs 216 billion but able to mobilise only Rs 206 billion. To meet the revenue target for the current fiscal year, it has to mobilise the revenue at over 20 per cent. But in the first three months the government has been able to mobilise revenue at 16.8 per cent only.
VAT — 38 per cent
Cusotms — 22 per cent
Excise — 16 per cent
Income tax — 13 per cent
Non-tax — Seven per cent
Others — Four per cent
(Source: Finance Ministry)