Government stares at revenue shortfall

The overall revenue mobilisation will fall short by at least Rs 3 billion to Rs 4 billion by the first half of the current fiscal year.
"If the ministry meets the revenue mobilisation growth by 20 per cent in the current month (mid-December to mid-January), it would be around Rs 3 billion shortfall," joint secretary at the Finance Ministry Shanta Raj Subedi said.
The ministry is optimistic on reaching near the target after some public enterprises pay their dividend, fees and royalty, and dues to the government, he said, adding that the ministry first is planning to mobilise revenue from the loss making public enterprises too.
The loss-making entity Nepal Electricity Authority is paying Rs 500 million, Civil Aviation Authority of Nepal (CAAN) is paying Rs 190 million and Hetauda and Udayapur Cement Industry are paying Rs 20 million to the government, he projected. "Similarly, Nepal Rastra Bank is also paying Rs 2 billion. The ministry is also optimist to receive Rs 2 billion from Nepal Telecom, though it has not yet held its annual general meeting.
"The chances of paying royalty from other private telecom service providers including Ncell and UTL is also high within the current month, he said. The ministry has expected to mobilise Rs 600 million from private telecom service providers and Internet Service Providers (ISPs). The main reason behind the shortfall is non-tax revenue.
"The ministry is upbeat to achieve 20 per cent increment in the revenue mobilisation in the current month since this month, everyone has to pay first installment of income tax and Value Added Tax (VAT)," according to the ministry that has directed banks — that are assigned to mobilise revenue — to continue their service on the last day (January 14) of the current month even though it is a public holiday.
The government has to collect Rs 112.93 billion revenue until mid-January since it has projected a total of Rs 241 billion revenue collection in the current fiscal year.
Similarly, the government has projected Rs 5 billion under reimbursement. However, it has received Rs 247 million reimbursements by the fifth month.