Tag: Collection

  • Nepal Clearing House Ltd. Processes Over NRs. 84 Billion on the Last Day of Poush 2080

    Nepal Clearing House Ltd. Processes Over NRs. 84 Billion on the Last Day of Poush 2080


    On the final day of Poush 2080, Nepal Clearing House Ltd. (NCHL) facilitated transactions totaling over NRs. 84 Billion through its payment systems. This marked a significant increase of 60 percent in transaction volume and 70 percent in transaction value compared to the corresponding day in the previous year. NCHL-ECC, NCHL-IPS, and RPS processed transactions amounting to NRs. 41 B, NRs. 14 B, and NRs. 29 B, respectively, on the last day of the second quarter.

    Real-time transactions within the RPS system experienced a surge, with transactions initiated from various sources such as connectIPS (App, Web, Gateway), CORPORATEPAY, bank branches, mobile banking, wallets, and NPI-integrated channels/systems. Throughout the day, both NCHL-IPS and RPS systems witnessed significant Government revenue collections surpassing NRs. 1.6 B and expenses exceeding NRs. 6.8 B, equivalent to over 1.25 lakh transactions. Government payments were facilitated through various channels, including connectIPS, CORPORATEPAY, NEPALPAY QR gateway, bank branches, mobile banking, and wallets.

    NCHL’s systems are utilized by more than 53 bank financial institutions (BFIs) as direct members and over 100 non-bank institutions as indirect or technical members. The BFIs extend payment services through their extensive network of over 7,000 branches, while indirect/technical members reach their customers through diverse channels.

  • Large Taxpayer Office Reports Record Profit Tax Collection of Rs. 12.5 Arba from Mergers, Acquisitions, and FPOs

    Large Taxpayer Office Reports Record Profit Tax Collection of Rs. 12.5 Arba from Mergers, Acquisitions, and FPOs


    The Large Taxpayer Office has reported the successful collection of Rs. 12.5 Arba in profit tax, derived from mergers, gains from acquisitions, and profits generated from Follow-On Public Offerings (FPOs). This significant amount was gathered on Friday and Saturday through detailed filings by numerous organizations. On Friday, 30 organizations contributed to this sum, filing taxes amounting to Rs. 11.3 Arba, with an additional 11 institutions filing taxes on Saturday, totaling Rs. 1.44 Arba. Mr. Janak Sharma, the head of the Large Taxpayer Office, commended both public and private entities for their proactive engagement in meeting their tax obligations.

    It was disclosed that among the 41 organizations paying taxes on profits from FPO, 14 also paid taxes on profits from both FPO and bargain purchases resulting from mergers and acquisitions. This tax collection falls under the current financial year, representing a substantial boost in revenue.

    This initiative was prompted by persistent recommendations from the Office of the Auditor General, raising concerns about tax evasion related to FPO premiums, gains from bargain purchases in mergers and acquisitions, and auction share sales. The Ministry of Finance and the Inland Revenue Department initially overlooked these concerns but took action following the 60th report of the Office, emphasizing the recovery of revenues from these sources.

    In response, Finance Minister Dr. Prakash Sharan Mahat introduced an arrangement to encourage timely payment of revenues. Companies paying taxes on FPO premiums, bargain purchase gains, and auction share sales by the end of Mangsir would be exempted from fines and interests. Despite legal scrutiny, the constitutional bench of the Supreme Court recently dismissed a petition filed by 16 Banking and Financial Institutions (BFIs), upholding the government’s position that the taxation did not constitute a levy on capital.

    The BFIs were given a deadline to deposit the specified amount by the end of Mangsir, and companies proactively met this deadline, contributing significantly to the substantial revenue collection observed over the weekend. The detailed breakdown of tax payments by various BFIs under different titles is provided, with a total of Rs. 7 Arba 97 Crores 87 lakhs remitted under FPO and Rs. 4 Arba 49 Crores 81 Lakhs for benefit of Bargain Purchases.

  • Government Utilizes 10.2% of Development Capital Amidst Sluggish Revenue Collection

    Government Utilizes 10.2% of Development Capital Amidst Sluggish Revenue Collection


    As the current fiscal year reaches its midway point with four and a half months passed, the government’s utilization of its development capital remains relatively modest at 10.2%. According to the Financial Comptroller General Office, the government has disbursed Rs 30.27 arba for the ongoing fiscal year, with an additional Rs 3.20 kharba allocated for previous expenditures.

    In the initial four and a half months of the fiscal year, the total government expenditure has reached 20.75%, totaling Rs 3.63 kharba. A noteworthy aspect is that 24.4% of this expenditure has been directed towards current expenses, covering salaries, allowances, and administrative costs for employees.

    Simultaneously, the government’s revenue collection has demonstrated sluggish performance, achieving only 20.66% of the targeted revenue during this period. The detailed breakdown indicates that 20.77% is derived from tax income, while non-tax income contributes 19.49%.

    The government’s revenue collection goal for the current financial year is set at Rs. 14.22 kharba. However, the current figure stands at Rs. 3.12 kharba, resulting in the government’s expenditures surpassing its income by Rs 50.61 arba.

  • Nepal’s Internal Revenue Collection Costs Rise to 3.38 Paisa per 1000 Rupees in FY 2079/80

    Nepal’s Internal Revenue Collection Costs Rise to 3.38 Paisa per 1000 Rupees in FY 2079/80


    In the fiscal year 2079/80, the Nepalese government conducted a cost analysis, revealing that it incurred a cost of 3.38 paisa to collect 1000 rupees of internal revenue. This analysis was conducted by the Internal Revenue Department (IRD), which reported a total revenue of Rs 4.79 kharba for the year. The departments and subordinate offices associated with revenue collection spent Rs 1.41 arba on current and capital expenditures. Consequently, the cost of tax collection per thousand rupees for the fiscal year amounted to Rs 3.38. This figure marked an increase from the previous year’s 2.23 paisa. The rise is attributed to the department falling short of its revenue target in the preceding year, achieving only 76.58% of the set goal of Rs 6.26 Kharba.

    The overall growth rate of revenue collection for the year was negative by over 10%, primarily influenced by reduced imports and economic relaxation. This decrease in revenue collection exerted pressure on the government’s resource management. Although the target for the fiscal year was set at Rs 14.3 kharba, only Rs 10.10 kharba was collected, representing 72% of the total target.

    The Internal Revenue Department underscores that recent technological advancements in the tax system have contributed to a decrease in the cost per thousand. Additionally, the department asserts that administrative improvements, adherence to expenditure frugality standards, and increased taxpayer participation have all played pivotal roles in reducing costs.

  • Shikhar Insurance Leads Non-Life Insurance Premium Collection with Rs. 36.19 Arba in Jestha

    Shikhar Insurance Leads Non-Life Insurance Premium Collection with Rs. 36.19 Arba in Jestha


     

    In the first eleven months of the fiscal year 2079/80, non-life insurance companies in Nepal collected an impressive amount of Rs. 36.19 Arba in premiums from 25.37 lakh active insurance policies. According to a report from the Nepal Insurance Authority, Siddhartha Premier Insurance holds the most active policies at 313,602, followed by Sagarmatha Lumbini Insurance with 305,633 policies. On the other hand, National Insurance Co. Ltd has the fewest active policies, with only 30,563 in total.

     

  • Last day to deposit remaining payment of Trishuli Jal Vidhyut Company IPO shares

    Last day to deposit remaining payment of Trishuli Jal Vidhyut Company IPO shares


    Trishuli Jal Vidhyut Company Limited (TJVCL) will begin collecting the remaining sum for the shares offered to the general public today, the 17th of Falgun. The collection began on 18th Mangsir, 2079.

    From the 7th to the 11th Chaitra, 2075, the company issued 3,705,000 units of IPO shares with a par value of Rs. 100 and an initial call amount of Rs. 10.

    Employees received 3% of the total 3,705,000 units, or 111,150 unit shares, with the remaining 3,593,850 unit shares issued to the general public.

    Investors could purchase shares by paying only 10%, or Rs. 10, of the share value, with the remaining 90%, or Rs. 90, to be paid later.

  • The Finance Ministry is developing an action plan for policy priorities and minimum programs.

    The Finance Ministry is developing an action plan for policy priorities and minimum programs.


    The Ministry of Finance has created an action plan to carry out the policy priorities and minimum programs.

    The action plan, according to the Ministry, includes policies and programs, milestones, resources, time constraints, monitoring and evaluation indicators, and so on.

    The action plan discusses promoting revenue collection effectiveness, further systematizing the revenue system, and maintaining professional neutrality while changing the revenue rate and controlling