Finance Ministry reports uptick in revenue collection

Kathmandu, Nov 21: Revenue collection in the first quarter of the current Fiscal Year 2024/25 has increased by 17 per cent compared to the corresponding period of the previous fiscal year.     

As per the details on revenue collection presented in a meeting of the Ministry of Finance, Higher Management Committee today, revenue of Rs 276 billion was collected in the first quarter of the Fiscal Year 2023/24.     

Revenue of Rs 323.24 billion has been raised in the first four months of the current fiscal year.     

However, the government has not been able to collect the revenue as per the target. Looking at the comparative situation of revenue mobilization in the last five years, 71.38 per cent progress was achieved in revenue collection as against the target of collecting revenue of Rs 1112.03 billion in FY 2076/77.     

Similarly, revenue mobilization progress was 92.50 per cent as against the target of Rs 1011.76 billion in FY 2077/78, 90.24 percent as against the target of Rs 1180.60 billion in FY 2078/79, 68.23 per cent as against the target of Rs 1403.15 billion in FY 2079/80 and 74.54 per cent as against the target of Rs 1422.54 billion in FY 2080/2081.     

The Ministry stated that the revenue collection target in the current FY is Rs 1419.30 billion. This target is nearly 34 percent higher as compared to the last FY's actual revenue collection.     

The target was to collect revenue of Rs 406.37 billion in the first four months of the current fiscal year and revenue Rs 323.24 billion has been collected during this period which is 80 nearly percent of the target. This is an increase by 16.85 per cent in the revenue collection of the corresponding period of the last fiscal year.     

Deputy Prime Minister and Finance Minister Bishnu Prasad Paudel mentioned that resources and expenditure management are important to achieve the goal of revenue collection, paying attention to aspects such as expanding the scope of taxes, collection of arrears, effectiveness of tax administration, employee conduct, inter-ministerial coordination, activities outside the customs point, and challenges in tax administration. He said that it is necessary to move forward.     

He also instructed those who seek to break the tax collection system to take action as per the law. Finance Secretary Dr. Ram Prasad Ghimire said that the ministry will move forward to meet the revenue target and emphasized on the implementation of the revenue collection strategy. He pointed out the need for everyone concerned to work harder to achieve the revenue target.     

Finance Ministry spokesman Mahesh Bhattarai said that despite the increase in revenue collection compared to the past, coordination and cooperation between all parties related to tax administration is necessary to fulfill the target of the current year, and the ministry is working on it as a priority.     

Director General of Customs Department Harisharan Pudasaini and Director General of Inland Revenue Department Ram Prasad Acharya said that they are doing their best to fulfill the goal of revenue collection by taking into account the opportunities and weaknesses that have emerged in the field of revenue collection.(RSS)