Government yet to raise Rs 275bn in arrears: IRD report

KATHMANDU: The government has yet to raise Rs 275 billion in arrears from 30,912 taxpayers up to fiscal year 2024/25, the Inland Revenue Department’s annual progress report, made public on Monday, shows.

The largest portion, Rs 219 billion, is owed in income tax by 193,620 taxpayers. Rs 48.7 billion remains to be collected from 137,253 taxpayers in VAT, while Rs 4.9 billion is due from 364 taxpayers in excise duty and Rs 3.15 billion from 1,770 taxpayers in other categories.

The Inland Revenue Department’s progress towards its annual target for raising dues in the last fiscal year was minimal. Only Rs 8.71 billion of outstanding income tax was collected against a target of Rs 22.76 billion, achieving 38.29% of the target, the report reads.

The Department had set a target of raising Rs 16.33 billion in VAT dues but collected only Rs 10.33 billion, or 63.28% of the target. For income tax arrears adjustment in the last fiscal year, Rs 21.39 billion was collected against a target of Rs 27.38 billion.

Likewise, the Department set a target to collect Rs 18.17 billion towards excise duty and collected Rs 22.29 billion, achieving 122.63% of the target compared with the previous fiscal year.

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