Revenue collection at customs up

By A Staff Reporter

KATHMANDU, Sept 10: Revenue collection at the customs increased by 12.76 per cent last month in comparison to the corresponding period last fiscal year. According to the Ministry of Finance, a total of Rs.1.67 billion was collected in July-August (Shrawan) this year, whereas the amount last year was Rs 1.48 billion.

Total revenue collection at the customs in fiscal year 2058-2059 was Rs. 1.4 billion, i.e., 96.92 per cent of the target. It was an increase of 11.98 per cent in comparison to the previous fiscal year (2057-58).

The ministry is planning to expand the ASYCUDA programme to meet the target of revenue collection. In order to make the customs administration and tariff structure more compatible with the World Trade Organization (WTO), the particulars related to the specification will be strictly followed. Besides, the Ministry and the Revenue Department will keep watch of all incoming and outgoing goods at various customs points.

The ministry has stated that the collection of revenue (including Value Added Tax and Income Tax) this fiscal year was 97 per cent of the target, up from 80 per percent last year. There has been a five per cent growth in revenue this year. However, VAT collection is not satisfactory.

The Ministry expects revenue collection to go up with the implementation of the new dividend policy.
Unveiling the overall picture of the revenue administration today, the MoF said that the 'performance indicators' would be put into action for the enhancement of individual performance. Besides, the central monitoring unit will be made effective in easing the process of investigation.

Given the odd working hours, the staff working in the customs will be given more incentives.
The MoF disclosed that the role of the Revenue Investigation Department would be made more effective to control revenue leakages, pilferage and illegal activities. With the coordination of the Inland Revenue Department (IRD), a special programme will be launched to monitor the billing system.
Talking to reporters, senior officials at the MoF said that efforts would be geared towards making the tax administration more effective and transparent.

To improve the Inland Revenue administration, the MoF has introduced an Inland Revenue Administration Improvement Plan (2059-60 BS). The Inland Revenue Department has begun hearing complaints every Friday from 10-12 p.m. The district office of the IRD has also initiated such process.
The Revenue Department has also established a 'call center' to provide information to the taxpayers. Bidyadhar Mallik, Joint Secretary at the MoF, said that a committee would be formed to monitor the works of the Inland Revenue Administration.

The committee will be formed under the chairmanship of the Director General of the IRD. The committee will consist of representatives of Chartered Accountants and the Office of the Comptroller.
In order to make the tax administration more effective and simple, a provision has been made for the voluntary disclosure of income. Functional targets will be set and regular monitoring activities will be carried out in order to facilitate revenue collection. Besides, performance of the office chiefs will be carried out, said Avanindra Shrestha, Joint Secretary at the MoF.

In order to control leakages to promote revenue collection, various measures have been introduced to make the billing more effective.

Apart from this, the VAT verification process will be given importance, said Shrestha.

A system of 'Link Audit' will also be introduced to discourage misappropriation and pilferages.

Responding to queries, Mallik said that the role of the RID would be made more effective in order to control malpractices in revenue collection. With the implementation of the new action plan, the role of the RID in curbing corruption will be even more important, said he. Narendra Shrestha, director general of the RID emphasized the need for enhancing the role of the RID.