Revenue collection reaches Rs. 323. 24 billion in four months: Ministry

Kathmandu, Nov. 21

Revenue collection for the first four months of the current Fiscal Year 2024/25 has increased by about 17 per cent compared to the corresponding period last year.

According to data presented at a meeting of the Ministry of Finance (MoF)’s High-Level Management Committee, revenue collection stood at Rs. 276 billion during the same period in the last FY 2023/24.

 This year, it has reached Rs. 323.24 billion, the MoF said in a statement on Thursday.

The MoF said that in the last five years, the revenue collection against the target was highest in FY 2020/21 with 92.5 per cent achievement against the annual estimates of Rs. 1.011 trillion.

Likewise, it was 90.24 per cent of Rs. 1.18 trillion in FY 2021/22, 74.54 per cent of Rs. 1.422 trillion in 2023/24, and 71.38 per cent of Rs. 1.112 trillion in 2019/20.

In FY 2022/23, the revenue mobilisation remained the poorest in five years with just 68.23 per cent achievement of Rs. 1.403 trillion.

This year, the annual revenue target is Rs. 1.419 trillion, a 34 per cent increase compared to the actual revenue collected last year. “Of this, the target for the first four months was Rs. 406.37 billion. However, Rs. 323.24 billion has been collected, meeting approximately 80 per cent of the target and marking a 16.85 per cent increase compared to the same period last year,” the MoF said.

Speaking at the meeting, Deputy Prime Minister and Finance Minister Bishnu Prasad Paudel highlighted the importance of managing resources and expenditures effectively. He stressed the need to broaden the tax base, recover arrears, enhance the efficiency of tax administration, ensure ethical conduct among staff and coordinate across ministries.

He also noted the challenges posed by activities outside customs checkpoints and within tax administration.

DPM Paudel instructed to take strict legal action against those attempting to disrupt the tax collection system. Revenue Secretary Dinesh Kumar Ghimire emphasised the need for additional effort to meet the revenue targets.

The MoF stated that while revenue collection has increased compared to previous years, achieving the annual target requires strong coordination and cooperation among all stakeholders in tax administration, which remains a top priority of the ministry.

Director General of the Department of Customs, Harisharan Pudasaini and Director General of the Inland Revenue Department, Ram Prasad Acharya, also assured that they were working diligently to address challenges and seize opportunities to meet revenue collection targets.

Published in The Rising Nepal daily on 22 November 2024.