Revenue mobilisation growth slows down, not to meet target

Due to low non-tax revenue mobilisation, the government seems not to meet the revenue target for the current fiscal year, too.
According to the Finance Ministry, the government has been able to mobilise Rs 43.83 billion by the end of the first three months of the current fiscal year. "The revenue mobilisation is only 16.8 per cent higher compared to the same period of the last fiscal year," according to the Finance Minister that has held an evaluation meeting today.
The meeting led by the Finance Minister Barsha Man Pun brainstormed on ways to increase the revenue mobilisation and non-tax revenue that has seen slow growth recently.
Finance Secretary Krishna Hari Baskota, on the occasion, asked the officials to actively involve in plugging the loopoholes in revenue leakages. "Prepare a work plan and be serious on meeting the revenue target," he said, adding that the ministry has to widen the tax net.
Similarly, Finance Minister asked the officials to finalise the investigation on VAT default case. "Though the import has pushed the customs revneue mobilistion up, it will have no positive impact on economy," he said, adding that the import substitution is a must to improve exports and create employment.
The VAT has as usual the highest contribution in the revenue mobilisation as it contributed Rs 16.73 billion, followed by Customs (Rs 9.54 billion), Excise (Rs 6.91 billion), Income Tax (Rs 5.64 billion), and Registration, Vehice and Non-tax (Rs 5.1 billion).
The goverment has targetted to mobilise Rs 246 billion revenue in the current fiscal year. Last fiscal year the government failed to meet its revenue target as it had targetted to mobilise Rs 216 billion but able to mobilise only Rs 206 billion. To meet the revenue target for the current fiscal year, it has to mobilise the revenue at over 20 per cent. But in the first three months the government has been able to mobilise revenue at 16.8 per cent only.

Revenue contribution
VAT — 38 per cent
Cusotms — 22 per cent
Excise — 16 per cent
Income tax — 13 per cent
Non-tax — Seven per cent
Others — Four per cent
(Source: Finance Ministry)

Fund transfer through ATMs along Indo-Nepal border under scanner

Indian Income Tax department is probing a 'treacherous' and secretive channel of money transfer through ATMs along the 'open' Indo-Nepal border which is suspected to have 'national security' implications, according to Indian media reports.
The department, which stumbled across the stealth money transfers during the recently conducted Assembly polls in five states, has sent a classified report to central security agencies for a detailed probe.
"The Income Tax department's investigation unit stumbled at this covert method of transferring of funds along the sensitive Nepal border recently. The transfer of funds could also involve cross-border transfer of cash," the report quoted a senior officer involved in the investigation.
A detailed report has been sent to the Intelligence Bureau and other law enforcement agencies to check instances of terror funding and supply of money for illegal arms trade along the border, the officer said.
The Income Tax report, prepared after collating data from across various locations along the 1,751 km-long Indo-Nepal border, has said the transfer of funds through ATMs of various banks is a subtle and cunning way of transferring funds, aimed at escaping the radar of investigating agencies or police.
"Issues related to national security need to be verified by various agencies," the officer, was being quoted in the media. -- Agencies