July 17: The revenue collection in the last FY 2072/73 has exceeded the government’s target by Rs 6 billion. In the beginning of the last FY, the revenue collection during the year was expected to fall short due to the devastating earthquake followed by the blockade resulting degraded investment environment and demobilised capital flow.  According to the statistics of Financial Comptroller Office, till the second quarter of the last FY revenue collection fell short by Rs 50 billion than the target. However, by the end of the year, Rs 481 billion revenue has been collected exceeding the target by Rs 6 billion. The Ministry of Finance has targeted Rs 475 billion revenue collection in the beginning of the last FY.

The Finance Ministry had initiated various ideas and strategies from February of the last FY in a bid to collect targeted revenue and to cope with decreasing export and import along with domestic revenue due to the blockade. “In an extreme condition too, Nepal has been enabled to achieve the revenue target through collection of old tax outstanding, account suspension of tax defaulters and reimbursement of development projects. Condition of bank and financial institutions and stock market is also fine,” said Rajan Khanal, Revenue Secretary.

In order to achieve the revenue target, the government directed Nepal Telecommunication Authority to deposit Rs 10 billion, a dormant fund in its Trust in the revenue.  Similarly, the matured loan amount paid by Nepal Oil Corporation worth Rs 12 billion has also contributed to meet the revenue target. Additionally, the government has auctioned age-old merchandise goods to achieve the revenue target.

The government also executed new regulations giving tax payer additional period to pay taxes till mid-July without penalties from earlier mid-March deadline. The government also implemented ‘back-up plan’ since mid-March to recover revenue shortage.

The back-up plan included identification of new sector for revenue collection, collection of tax outstanding, increase in production through optimum use of resources and budget expenditure. Apart of it, reprioritisation of programs and extension of tax payment period were also comprises the plan. The government has targeted of collecting Rs 565 billion revenue in the current FY 2073/74.