December 20: The government has failed to meet its internal revenue collection target set for the current fiscal year. In the first five months of the current fiscal year, the revenue collection has been 13.63 percent less than the target, according to the Inland Revenue Department (IRD).    
The department had set a goal of collecting internal revenue worth Rs 174.37 billion in the review period but has collected Rs 150.5 billion, which is about Rs 24 billion less than the target.    

The government has also failed to meet the target of collecting income tax, value added tax (VAT) and excise duty. The progress in collection of income tax is 80.61 percent of the target while that of value added tax is 82.47 percent and excise duty is 97.9 percent in the review period.    
On the other hand, the government has surpassed its target of collecting health care tax and education tax during this period. According to the IRD, the global scenario and the impact of internal problems on the economy caused obstructions in revenue collection.    
IRD Director Raju Prasad Pyakurel told the state-owned RSS that the department had set the target by estimating normal situation but could not meet the target due to an extraordinary situation.    
Income tax collection has been affected this year due to sluggish capital market and real estate transactions, the IRD added.
Similarly, the department also acknowledged that the revenue collection has declined due the liquidity crisis in the banking system, non-availability of working capital loans, restrictions on the import of goods, and low capital expenditure of the government.