Even though there are no significant number of coronavirus infection cases in Nepal, the nation is suffering adversely from the implications of the contagion.
So far, the Nepali Government has managed to reach only 53.46% of its annual revenue target due to the drop in all economic activities over coronavirus pandemic. Moreover, the government has only 3 months in the current FY 2019/20 to reach the target, which is unfeasible.
According to the Financial Comptroller General Office (FCGO), the Nepali Government has collected only NPR 590.63 billion in taxes against the target of NPR 1.11 trillion.
As of April 12, 2020, the total taxes collected by the government accounts to 53.46% of the NPR 1 trillion target. So, the government has to collect taxes worth NPR 470 billion in the remaining 3 months to meet the annual target.[MUST READ: COVID-19: Another Blow to Nepal’s Economy
The coronavirus pandemic has thrown a spanner in the economic activities across the country. Meanwhile, the ‘StayAtHome’ policy has impeded the collection of excise duty, customs duty and income tax.
[ALSO READ: COVID-19 Impacts Nepal’s Inflation Rate‘]
Due to the nationwide lockdown from mid-March, the government was able to collect taxes worth only NPR 42 billion.
In order to boost the revenue collections, the Nepali Government even directed the Revenue Department to facilitate the implementation of a 10% VAT refund on electronic payments.
However, the colossal impact of coronavirus pandemic on the economy of the country made the online payment facility unworthy.[MUST READ: Nepal Launches Coronavirus Website and Mobile App]
Apart from disrupting the revenue collection, the COVID-19 outbreak has also impacted the nation’s capital expenditure capacity.
The unavailability of construction materials or shortage of workers has hindered almost all big projects in the country.
According to the Financial Comptroller General Office (FCGO), the Nepali Government has managed to spend only 26% of the NPR 408 billion capital expenditure budget allocated for development activities.
So far, Nepal has reported only 14 coronavirus infection cases and has somehow managed to escape the worst.
Stay Tuned to Nepali Sansar for Latest News Updates on COVID-19!