KATHMANDU, Jan 15: In the first six months of the current fiscal year (FY) 2025/26 (mid-July to mid-January), the government has collected Rs 581.41 billion, equivalent to 81.75 percent of the target, according to the Ministry of Finance.
Of this amount, Rs 171.63 billion was collected in the month of Poush (mid-December to mid-January) alone, achieving 89.96 percent of the monthly target of Rs 190.77 billion.
Both the Department of Customs and the Inland Revenue Department fell short of their revenue targets. Customs collected 83.35 percent of its target, while the Inland Revenue Department achieved 80.51 percent.
Diversifying Government Revenue
By mid-January, the six-month revenue target had been set at Rs 711.21 billion, against which the actual collection of Rs 581.41 billion shows a shortfall of Rs 129.8 billion. The government’s annual revenue target is Rs 1.48 trillion, and mid-year collection represents 39.28 percent of this goal.
Compared to the same period last FY 2024/25, revenue collection has slightly improved. By Poush last fiscal year, Rs 567 billion had been collected, reflecting a 2.47 percent increase this fiscal year.
Income tax collection lagging: The Finance Ministry reported that income tax collection has been lower than expected. The target for income tax by Poush was Rs 194 billion, but only Rs 138 billion was collected, achieving 71.11 percent of the target. This represents a 2.66 percent decline compared to the same period last year.
Customs revenue improves, but remains below target: Customs revenue increased by 8.08 percent compared to last year but reached only 79.03 percent of its target of Rs 146.83 billion. Value-added tax collection also fell short, with Rs 167 billion collected against a target of Rs 186 billion. Meanwhile, excise duty collection increased by 9.46 percent, achieving 90.06 percent of the target.
The Finance Ministry noted that both the Customs Department and the Inland Revenue Department failed to meet their respective targets. Customs had a six-month target of Rs 286 billion but collected only Rs 238 billion, while the Inland Revenue Department, with a target of Rs 344 billion, collected Rs 277 billion.
Annual growth rates stood at 8.48 percent for customs revenue and 2.99 percent for the Inland Revenue Department.
