Inland Revenue Department (IRD) has said that the collection of non-tax revenue is not satisfactory for the first four months of the current fiscal year.
The revenue mobilisation figure under education service tax, service tax and rental tax has failed to meet expected numbers, said director general at the department Tanka Mani Sharma, adding that the department will put in more effort in improving revenue collection figures in these sectors.
There is an administrative problem with the revenue administration, he said. Similarly, taxpayer education will also play a vital role in increasing revenue mobilisation.
IRD has been able to collected revenues according to target, he said. But low non-tax revenue mobilisation is of serious concern. Sharma vowed to expand taxpayer education to enhance self compliance which will subsequently increase revenue mobilisation. The department will open more taxpayer service offices and make the already established offices more effective in the coming days, he added.
In the last one decade non-tax revenues contribution to the total gross domestic production (GDP) stands between 2.14 per cent to 2.69 per cent, whereas contribution of total revenue to the total GDP stands at over 16 per cent.
However, non-tax revenues average contribution to the total revenue comes between 16 per cent and 22 per cent contributing to less than a quarter.
For a strong revenue administration its a challenge as contribution of non-tax revenue should be more in the total revenue.