The government failed to meet the revenue mobilisation target due to shortfall in value added tax (VAT) and income tax in the first four months of the current fiscal year.
The Inland Revenue Department (IRD) – In the period between mid-July and mid-November – has mobilised Rs 104 billion revenue, which is only 83.2 per cent of the target. “Of the annual revenue mobilisation target of Rs 506 billion – for the current fiscal year 2019-20 – the target for the first four months was set at Rs 125 billion.
The department informed that it is also unable to meet the revenue mobilisation target for excise duty, health service tax and education service fee. “However, the collected amount was an increase of 23 per cent against the department’s revenue mobilisation in the same period of last fiscal year,” the department informed, claiming that the department is continuously identifying the lapses and initiating reforms for revenue mobilisation.
The IRD had formed the study team in July to identify the lapses in tax mechanism, and recommend it.
The department is also gearing up to provide the facility of 10 per cent cashback on electronic payments to promote the digital payment system and also the formal channel for trading.
The department is also gradually implementing its five-year (2018-19 to 2022-23) tax reform strategic plan to make the revenue administration more stronger ans transparent.
The Inland Revenue Department (IRD) – In the period between mid-July and mid-November – has mobilised Rs 104 billion revenue, which is only 83.2 per cent of the target. “Of the annual revenue mobilisation target of Rs 506 billion – for the current fiscal year 2019-20 – the target for the first four months was set at Rs 125 billion.
The department informed that it is also unable to meet the revenue mobilisation target for excise duty, health service tax and education service fee. “However, the collected amount was an increase of 23 per cent against the department’s revenue mobilisation in the same period of last fiscal year,” the department informed, claiming that the department is continuously identifying the lapses and initiating reforms for revenue mobilisation.
The IRD had formed the study team in July to identify the lapses in tax mechanism, and recommend it.
The department is also gearing up to provide the facility of 10 per cent cashback on electronic payments to promote the digital payment system and also the formal channel for trading.
The department is also gradually implementing its five-year (2018-19 to 2022-23) tax reform strategic plan to make the revenue administration more stronger ans transparent.
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