The Nepali government collected Rs 115.19 billion in revenue in Asoj, achieving 99.8 percent of its monthly target. This marks a significant improvement in revenue collection for the current fiscal year, despite challenges such as floods, landslides, disruptions at land routes with China, and a temporary systemic issue at the Birgunj customs point.
According to the Ministry of Finance, the government had aimed to collect Rs 115.41 billion in Asoj. The revenue collected in Asoj this year is Rs 30.78 billion more than the Rs 84.41 billion collected in Asoj of the last fiscal year (2082/83), indicating a 24 percent increase. On Asoj 30 alone, Rs 3.79 billion was collected.
Finance Minister Swarnim Wagle attributed the revenue growth to what he claimed were courageous policy reforms and good governance. The government’s policy efforts and administrative reforms are seen as contributing to the improved revenue collection, which included expanding the scope of Value Added Tax (VAT) and adjusting customs and other taxes by reducing excise duty on some items.
Despite the monthly improvement, overall revenue collection for the current fiscal year remains a challenge. As of Asoj 30, the government collected Rs 299.77 billion, which is 90.8 percent of the target of Rs 330.22 billion for the period. This means revenue collected was Rs 30.45 billion less than the cumulative target.
However, compared to the same period last fiscal year (2082/83), revenue collection has increased. The current fiscal year’s collection of Rs 299.77 billion is Rs 56.65 billion more than the Rs 243.12 billion collected by Asoj 30 of the previous fiscal year.
Ministry of Finance officials noted that the improvement in revenue collection is not uniform across all tax categories. While consumption-related taxes have shown an increase, income tax collection has not met expectations. This raises questions about the government’s goal of expanding the revenue base.
The government has set an annual revenue target of Rs 1.58 trillion for the current fiscal year, which is Rs 1.03 billion more than the Rs 1.48 trillion target of the last fiscal year.
