95.9 pc progress in internal revenue collection in 7 months

Kathmandu: In the first seven months of the current Fiscal Year 2021/2022, the progress towards internal revenue has been only 95.9 percent.

According to the Inland Revenue Department, income tax of Rs 112.43 billion has been collected till January this year.

According to the statistics of the department, Rs 65.12 billion has been collected for value added tax during this period. Meanwhile, Rs 43.58 billion has been collected in excise duty. Internal revenue of Rs. 2.88 billion has been collected on education service charges and other headings. Thus, a total of Rs. 224.01 billion internal revenue has been raised during this period.

However, the overall revenue collection is close to the target due to the increase in imports. According to the department, the collection during the period up to the 7th month of the current fiscal year is 9.72 billion less than the same period last year.

However, Corona did not have an impact during this period last year. Corona’s impact on the economy began to show only since mid-March, 2021. According to the department, the low cost of collection has caused a contraction in the economy and a negative impact on economic transactions.

The Inland Revenue Department has decided to make an alternative action plan to achieve the revised target as per the target achieved in the current fiscal year. The department has made such decision while reviewing the progress till January of the current fiscal year.

The decision to make the taxpayer service more tax-friendly and service-oriented, to implement policies and programs that have not been completed by including them in revenue policies and programs, and to analyze the impact of COVID 19 on the economy and tax system, and to make an agenda for future revenue policy, program, and tax system.