Revenue Collection Reaches NPR 409 Billion in Five Months, Sluggish Real Estate and Stock Trading Challenge Targets

The Government of Nepal has collected NPR 409.78 billion in revenue during the first five months of the current fiscal year 2082/83. According to the Ministry of Finance, by the end of mid-November, tax revenue stood at NPR 382.23 billion, non-tax revenue at NPR 24.07 billion, and miscellaneous receipts at NPR 3.47 billion. This accounts for only about 78.74 percent of the annual revenue target.

Compared to the same period of the previous fiscal year, revenue collection has increased by 1.68 percent. Joint Secretary at the Ministry of Finance, Tanka Prasad Pandey, stated that despite unfavorable economic conditions, revenue collection has remained positive. He noted that customs duties, value-added tax (VAT), and excise duties have shown encouraging growth, while income tax revenue has declined by 8 percent.

The decline in income tax revenue has been attributed mainly to lower interest rates, which have reduced interest income tax collections. Additionally, sluggish real estate transactions have resulted in lower capital gains tax revenue, further challenging the government’s ability to meet its revenue targets.

However, the Ministry of Finance remains optimistic, citing the reopening of land parcel transactions and early signs of recovery in the stock market. The ministry believes that increased economic activities driven by upcoming election-related spending and reconstruction projects will help boost revenue and enable the government to achieve its target by the end of the fiscal year.