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Nepal’s Economy Becoming Import-Oriented: NRB Report

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Nepal’s Economy Becoming Import-Oriented: NRB Report
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March 4: Nepal imported goods worth Rs 724 billion in the first six months of the current fiscal year while the country’s export during the same period (mid-July to mid-January) was Rs 45 billion. Nepal Rastra Bank’s bi-annual report published recently shows that the country’s economy is becoming more and more import-oriented. The report shows a trade deficit of Rs 679 billion.

During the review period, the country’s economic growth stood at 6.7 percent while inflation was 4.6 percent. It also shows that the government spent Rs 296 billion in recurrent budget while the capital expenditure was Rs 55.72 billion in the first six months.

The recurrent expenditure has been as expected but the low capital expenditure paints a bleak picture of infrastructure development.

Likewise, the government has not met its target in revenue collection during the review period. Although the government had set a target of collecting Rs 429 billion in revenue, it was able to collect only Rs 402 billion.

According to the Ministry of Finance, 11 taxpayer service centers, six inland revenue departments and one medium-level tax office were established in the review period. Likewise, five small customs offices were upgraded into main customs points.

Meanwhile, the government has made arrangement for payment of revenue up to Rs 100,000 through e-payment system for the taxpayers.  In the six months of FY 2018/19, a total of 85,049 people were issued Permanent Account Number (PAN) for commercial purpose while 46,837 received PAN on individual basis. According to the ministry, among those getting PAN for commercial purpose, 20,074 also registered for Value Added Tax and 11,615 for excise duty.

 

 

 

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