According to the Ministry of Finance (MoF), the Nepali Government collected revenue amounting to NPR 761 billion during mid-July 2020 and mid-May 2021. The amount accounts for 94.6% of the revenue collection target for FY 2020/21.
In the first ten months of the current fiscal year, the revenue collection is 25.41% more than the revenue collected in the same period last fiscal. Despite a massive decline in domestic economic activities amid the pandemic, the government has witnessed significant revenue collection due to the increase in merchandised imports.
According to the monthly economic bulletin released by MoF, the significant rise in imports has led to a significant increase in the collection of customs duty, value-added tax (VAT), and excise duty.
In the review period, the government has collected customs duty worth NPR 168.17 billion, exceeding its own target of NPR 160.48 billion.
Likewise, the VAT collection from internal sectors stood at NPR 361.32 billion, an increase of 20.5% from the last fiscal. The MoF attributed the increase in tax collection to the government’s recent introduction of an online payment system for tax liabilities.
However, the non-tax revenue collection dropped by 6.49% to NPR 51.38 billion in the review period.
Stay Tuned to NepaliSansar for Latest Nepal Financial News!