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KATHMANDU: Although revenue mobilization saw a modest growth in the first half of fiscal year 2025/26, it still fell Rs 129.8 billion short of the target set for the period.
According to the Ministry of Finance, the government mobilized Rs 581.41 billion in revenue between mid-July last year and mid-January. This represents 81.75% of the target set for the period. It had targeted to raise Rs 711.21 billion by mid-January.
Total revenue over the first sex months went up by 2.47% compared to Rs 567.40 billion that the government raised in the same period of the previous fiscal year.
The revenue growth was driven largely by value-added tax (VAT) and customs revenue, which shows that domestic consumption is gradually picking up. VAT collection increased by 8.31% to Rs 167.71 billion as of mid-January. Similarly, customs revenue recorded a growth of 8.08% with total collection of Rs 116.05 billion.
Total imports increased by 15.83% to Rs 766.18 billion over the first five months of the current fiscal year.
In the first six months of the previous fiscal year, customs and VAT revenue stood at Rs 107.37 billion and Rs 154.85 billion, respectively.
Income tax collection, however, declined by 2.66% to Rs 138.15 billion in the review period. In the first six months of 2024/25, the government had mobilized Rs 141.93 billion in income tax.
Excise duty collection rose by 9.46% to Rs 91.27 billion in six months, compared to Rs 83.38 billion a year earlier.
The government is looking to raise Rs 1,480 billion in the current fiscal year. According to the Financial Comptroller General Office, only about 40% of the annual target has been achieved over the first half of the fiscal year.
