Revenue collection up18 pc in first month

Post Report

KATHMANDU, Sept 9 : The revenue collection, accruing out of customs, Value Added Tax (VAT), excise duty and non-tax sources, recorded a significant growth of 18.1 percent during the first month of the current fiscal year 2003/04.

According to revenue figures issued by the Ministry of Finance (MoF), the government mobilised a total of Rs 3.20 billion during the period. Increased business activities during the cease-fire period have been attributed to better revenue collection. During the same period last year, the revenue mobilisation had declined by 7 percent.

Of the total revenue mobilised during the month, Rs 2.88 billion was collected as tax revenue. This was an increment of 10.7 percent as compared to that of the like period last year.

Likewise, non-tax revenue collection stood at Rs 317.77 million, which was a massive increment of 302.5 percent over the collection recorded during the first month during the last fiscal year. The contribution of tax revenue accounted for 90.1 percent, while that of non-tax revenue stood at 9.9 percent.

Despite the overall increment in revenue, customs revenue mobilisation during the month declined by 2.3 percent as compared to the revenue collection of the corresponding period of the previous year. According to the MoF statistics, the revenue collection from customs stood at Rs 917.4 million during the month and this comprised almost 29 per cent of the total revenue.

On the VAT front, Rs 1.05 billion was collected during the first month of 2003/04. While the contribution from VAT was 33 percent to the total revenue mobilisation, the collection was higher by 4.6 percent against VAT collected for the month last fiscal year.

Revenue collection under the ‘taxable sources’ too recorded a significant growth of 39 percent. During the period, a total of Rs 426.9 million revenue was raised through taxable sources, and this was 13.3 percent of the total revenue.

The statistics further revealed that the revenue collection from the excise duty amounted to Rs 293 million, which was higher by 2.6 percent over that of the like period last year. Its contribution to the total revenue was 9.2 percent.

While revenue collection from vehicle tax was Rs 62.4 million, an increment of 58.5 percent compared to the amount mobilised during the same period last year, revenue from registration charges was Rs 125.5 million, an increment of 43 percent over the revenue mobilisation of the similar period of the last year.

Vehicle tax and registration charges contributed 2 percent and 3.9 percent of the total revenue mobilisation respectively.

Likewise, the government mobilised revenue of Rs 317.7 million from non-tax revenue sources during the month. This figure was an increment of 302.5 percent than that mobilised during the same period last year.

Meanwhile, the total revenue mobilised during the month stood at 5.1 percent of the annual target and 99 percent of the monthly target.

Traders warn of staging protest

POST REPORT

RAJBIRAJ, Sept 9 : The local traders have warned of staging protest if the municipality and District Development Committee (DDC) continue collecting raised tax going against the Local Self-Governance Act.

Local traders blame that the DDA has violated norms of Local Self-Governance Act by pressing them for tax. "The contractors of the municipality and the DDC have forcefully collected tax even from food industries," said Lalu Prasad Agrawal, proprietor of Giridhari Food Industry. "There is no provision on raising tax from this sector."

He said that while exporting and importing food products, they have to pay an additional amount of Rs 50 to 500 per truck.

"As against the Act, the municipality and the DDC have been collecting revenue even from banana by terming it as herbs. Moreover, they have been charging additional Rs 150 per tractor and Rs 300 per truck in pebbles and silt which is against the actual rate fixed by the government," said Bijaya Kumar Das, general secretary of Saptari Chambers of Commerce and Industry (SCCI).

"If the concerned do not fulfill our demand, we will certainly stage a strong protest,’ said Manoj Mundra, President of SCCI. He said that they are compelled to stage protest as the concerned sectors turned a deaf ear toward their frequent requests to stop such unauthorised collection of money.

MAW appoints Appa as Libero brand ambassador

KATHMANDU, Sept 9 (PR)- Morang Auto Works (MAW), the authorised distributor of Yamaha Motor India Limited for the kingdom of Nepal, has appointed renowned Everest summitteer Appa Sherpa as Brand Ambassador of Libero motorcycle.

This was disclosed at a press meet organised by MAW here today.

Appa Sherpa has scaled the world’s highest mountain for 13 times had has got his name included in the Guinness Book of World Records.

Announcing Appa’s appointment as Brand Ambassador of Libero, one of the latest models of bike of the company, Vishnu Kumar Agrawal, CEO of MAW, said the company as appointed Sherpa as the ambassador for up to 2004.

The 106 cc four-stroke bike which gives a mileage of 85 kilometres under standard test condition is available in Champagne Gold, Safari Green, Candy Maroon and Midnight Black colour.

Imported furniture threaten local industry

By Indu Nepal

KATHMANDU, Sept 9 : With sleek, stylish and swanky look with an enchanting finishing, the furniture imported mostly from the South East Asia became favourite as soon as they entered the local market few years back. Their elegant designs that suited with the contemporary life styles and competitive price are the reasons of their success.

The soaring demand of imported furniture is a clear indication that the locally made furniture, which is less competitive in terms of both design and price against the imported ones, is constantly losing the local market.

"Fine finishing and competitive pricing are the two major factors for the success of the imported furniture in recent years," states Surendra Sthapit, manager of Furniture Land, Tripureshwor.

According to him, most furniture made in Nepal do not have as fine finishing as imported ones. "If the local furniture come with good finishing and touching design, it would cost a lot more, beyond the reach of an average middle class family to afford," he added.

The customers also agree on it. "Imported furniture are trendy and suit the contemporary lifestyle. What more! They come with an attractive price tag", said Ram Sharan Shrestha, a customer. He added that availability of wide-range of imported furniture matching with most of the demands of a customer is also a cause for growing popularity.

At Furniture Land, computer table is the largest selling item and is largely consumed at the household level. However, plagued by the economic downturn, consumption of furniture at the household level has fallen at present and office furniture makes up a substantial part of the business.

Padma Shree Furniture Factory at Gyaneshwor supplies elegant furniture without compromise. Labelled with "blending traditional values with state-of-the-art technology", the factory has seen very little or no impact on its business during the ongoing recession, state its officials. Such consistency in its performance has largely to do with the nature of ‘targeted customers’ business strategy, which includes big hotels and business houses. "Undoubtedly, the demand has been slow, but our furniture are still on high demand ," said Shiva Sigdel, sales officer of Padma Shree.

Padma Shree, which is particularly the leader in manufacturing sofas, in fact is the only furniture supplier having its own factory with a seasoning plant. The price range of a set of sofa ranges from Rs 70,000 to as much as Rs 100,000.

The demand trend of overall furniture consumption, however, is difficult to determine, as the distinction and range of products offered in the market is wider. "While one furniture product is consumed highly at one point, other products rule the market at other times," state concerned businessmen.

And, the demand for furniture at household level also varies with festive seasons, mostly marriage seasons, say officials of Royal Choice Furniture at Baneshwor, which deals in the imported furniture.

The target customer of Royal Choice too is high-income group. However, unlike Padma Shree, it is facing a tough time in the current economic gloom. "The decline in economy means a decline in business activities and we are no exception."