Wednesday, December 14, 2011

Revenue mobilisation slows down

The government may fail to meet revenue mobilisation target for the current fiscal year, if the current rate of revenue mobilisation continues.
The government has been able to mobilise Rs 60 billion revenue in the first four months of the current fiscal year, which is 17 per cent increment compared to the same period last fiscal year," according to the Finance Ministry that held the evaluation meeting today.
In the meeting attended by finance secretary, department heads and office chives of the Valley tax offices, the Department of Inland Revenue however claimed that the target will be met as by the third week of the fifth month (Mangsir), it has been able to mobilise Rs 70.33 billion.
The registration tax, vehicle tax and non-tax mobilisation has been sluggish but the income tax mobilisation has recorded 99.18 per cent, whereas customs and excise has exceeded the monthly target, the department briefed the finance minister Barsha Man Pun.
"By the end of the fifth month, the revenue mobilisation will exceed the target," the officials said, adding that the mobilisation will improve in the coming months.However, the minister directed the officials to be serious to meet the revenue mobilisation target. "By the end of six months, the revenue mobilisation has to increase by 22 per cent compared to last fiscal year," he said, adding that the indicators of the economy are looking good except the revenue mobilisation.
The revenue mobilisation has to be around 20 per cent to meet the revenue target for the current fiscal year. The government has targetted to mobilise Rs 247 billion revenue in the current fiscal year despite its failure to meet the target by Rs 10 billion in the last fiscal year because of huge leakages and financial indiscipline.

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