KATHMANDU: The government is unlikely to meet target of vehicle tax collection in the current fiscal year. The Department of Transport Management report shows it collected Rs 4.02 billion vehicle tax which is 87.4 per cent of the target fixed for first nine months of this fiscal year.
Based on the target, the department was supposed to collected Rs 4.6 billion by the end of first nine months. Slowdown in import and registration of automobile products is attributed as major fact behind low progress in tax collection, according to the department officials. For the current fiscal year, the government has targeted to collect Rs 5.5 billion vehicle tax.
The department has registered a total of 145, 254 units of vehicles in the review period this year which is decline by nearly 10 per cent compared to same period last fiscal year. During the first nine months of last fiscal year, the department had registered 161,027 united of vehicles and collected additional four per cent tax.
This year, there is fall in registration of other vehicles except cars, vans and power trailers, as per the department report. “When there is less import, vehicle tax collection also gets low,” said Mukti KC, technical director of the department. He added that they collected Rs 4.32 billion by first 10 months and they are struggling to meet the target of Rs 5.5 billion vehicle tax.
Vehicle tax is considered as one of the major contributor to the government in revenue mobilisation. In the review period, the transport department which also collects revenues under other tax heads have collected a total of Rs 6.7 billion tax. It collected Rs 562.57 million under heading of vehicle permission and driving licence issuance fee and Rs 1.93 billion as urban road construction and maintenance fee.
Likewise, Rs 184.04 million and Rs 2.68 billion have been collected under transport sector income and non-tax revenue headings, respectively. The department officials said that even as there was comparative growth in collection of other taxes, revenue collection as fee from issuance of driving licence this year had declined for the delay in implementing new trial system in regional offices of the department. The department had collected Rs 693.36 million revenue as licence issuance fee in the first nine months of last fiscal year.
First nine months’ performance
Category This FY Last FY
Vehicle tax Rs 3.6 billion (104% of target)Rs 4.02 billion (87.4% of target)
Vehicle registration 145, 254 units 161,027 units
Two-wheelers 120,887 units 136,954 units
Cars 8,553 units 7,022 units
Based on the target, the department was supposed to collected Rs 4.6 billion by the end of first nine months. Slowdown in import and registration of automobile products is attributed as major fact behind low progress in tax collection, according to the department officials. For the current fiscal year, the government has targeted to collect Rs 5.5 billion vehicle tax.
The department has registered a total of 145, 254 units of vehicles in the review period this year which is decline by nearly 10 per cent compared to same period last fiscal year. During the first nine months of last fiscal year, the department had registered 161,027 united of vehicles and collected additional four per cent tax.
This year, there is fall in registration of other vehicles except cars, vans and power trailers, as per the department report. “When there is less import, vehicle tax collection also gets low,” said Mukti KC, technical director of the department. He added that they collected Rs 4.32 billion by first 10 months and they are struggling to meet the target of Rs 5.5 billion vehicle tax.
Vehicle tax is considered as one of the major contributor to the government in revenue mobilisation. In the review period, the transport department which also collects revenues under other tax heads have collected a total of Rs 6.7 billion tax. It collected Rs 562.57 million under heading of vehicle permission and driving licence issuance fee and Rs 1.93 billion as urban road construction and maintenance fee.
Likewise, Rs 184.04 million and Rs 2.68 billion have been collected under transport sector income and non-tax revenue headings, respectively. The department officials said that even as there was comparative growth in collection of other taxes, revenue collection as fee from issuance of driving licence this year had declined for the delay in implementing new trial system in regional offices of the department. The department had collected Rs 693.36 million revenue as licence issuance fee in the first nine months of last fiscal year.
First nine months’ performance
Category This FY Last FY
Vehicle tax Rs 3.6 billion (104% of target)Rs 4.02 billion (87.4% of target)
Vehicle registration 145, 254 units 161,027 units
Two-wheelers 120,887 units 136,954 units
Cars 8,553 units 7,022 units
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