High import propels revenue mobilisation

Increased import of petroleum products, vehicles, readymade garments and telecommunications equipment has propelled customs revenue pushing the overall revenue mobilisation up in the last month, according to the Finance Ministry.

The exemption of Indian excise has also boosted customs revenue, it said, adding that reforms in customs valuation and tax administration, coupled with leakage control drive have also contributed to the encouraging revenue mobilisation.

Despite the political transition, the expansion of the service sector apart from fewer strikes and bandhs have also helped boost non-tax revenue mobilisation, according to the ministry.

In the nine months till mid-April of the current fiscal year, the government has been able to mobilise Rs 210.46 billion revenue — some 22.30 per cent higher — compared to the same period of last fiscal year 2011-12, when the government had been able to mobilise Rs 172.09 billion, the ministry said.

The highest grosser, due to increased imports as usual, has remained value added tax (VAT) with Rs 60.33 billion, followed by income tax (Rs 48.26 billion), customs (Rs 41.64 billion), and excise (Rs 26.19 billion), apart from non-tax revenue (Rs 26.35 billion), registration fee and vehicle tax (Rs 7.13 billion) and education tax (Rs 242.6 million) by the first nine months of the current fiscal year.

Likewise, the growth rate of customs — due to increased imports — and income tax has been highest at 38.89 per cent and 31.12 per cent, respectively, compared to the same period of last fiscal year, the data revealed, adding that education service tax, though small in amount, has also recorded a 43.2 per cent growth in the nine months of the current fiscal year as compared to the same period last fiscal year.

In the ninth month alone (mid-March to mid-April), the government mobilised Rs 32.49 billion revenue, including Rs 29.85 billion tax revenue and Rs 2.63 billion non-tax revenue, the ministry said, adding that total revenue mobilisation has been encouraging due to growing imports. 

Sectoral contribution

VAT – 29 per cent

Income tax – 23 per cent

Customs – 20 per cent

Excise – 12 per cent

Non-tax and others – 13 per cent

Registration fee and vehicle tax – 3 per cent

(Source: Finance Ministry)

Comparative growth

Sector – FY 2011-12 – FY 2012-13

VAT – Rs 52.43 billion – Rs 60.63 billion

Income tax – Rs 36.80 billion – Rs 48.26 billion

Customs – Rs 29.98 billion – Rs 41.64 billion

Non-tax and others – Rs 25.25 billion – Rs 26.35 billion

Excise – Rs 21.73 billion – Rs 26.19 billion

Registration fee and vehicle tax – Rs 5.71 billion – Rs 7.13 billion

Education tax – Rs 169.4 million – Rs 242.6 million

Total – Rs 172.09 billion – Rs 210.46 billion

 (Source: Finance Ministry)