Revenue mobilisation misses target

Going by the figures of the seventh month, the government seems to almost meet the target of revenue mobilisation, though it falls short of couple of billions in its target.
"By the seventh month, the Finance Ministry has been able to mobilise Rs 128.5 billion revenue, according to the preliminary data," said finance secretary Krishnahari Baskota. "The target for the seventh month was Rs 131 billion and the annual target is Rs 248 billion."
Similarly, the month-wise target for the seventh month was Rs 18.5 billion, but the ministry has been able to mobilise Rs 18 billion, he said, being hopeful of meeting the annual target for this fiscal year.
Last fiscal year, the government fell short of its revenue target due to massive revenue leakages and VAT — the highest contributor to the revenue — fraud cases.
But this fiscal year's seventh month witnessed Rs 40 billion VAT mobilisation, which is 104 per cent of the target, the finance secreatary said, adding that the ministry has been able to mobilise Rs 23 billion in customs — that is 102 per cent of the target — Rs 26.25 billion in Income tax — that is 103 per cent of the target — whereas the slowdown in land and housing transactions and vehicle sales hit the registration and transport tax.
"The ministry mobilised only 75 per cent to Rs 4.25 billion in the registration and transport tax," he added. "The poor financial health of Nepal Oil Corporation (NOC) and Nepal Electricity Authority (NEA) hit the non-tax mobilisation as the ministry has been able to mobilise only 90 per cent to Rs 18.5 billion of its target under non-tax."
The technically insolvent Nepal Oil Corporation has been instead of paying the government, asking for loan every month to maintain smooth supply of the petroleum products.
Similarly, the Nepal Electricity Authority is also in bad financial health leading to massive accumulative losses and has become unable to contribute to the government coffer.
Similarly, apart from registration and transportation tax and non-tax, the excise, is also the poor performer that could not meet the target pulling the overall target down to Rs 2.5 billion shortfall.
The ministry has been able to mobilise Rs 17 billion excise, which is only 93 per cent of the target.