"The Dawn of a New Fiscal Era: Today Marks the Commencement of the New Financial Year with the Enactment of Fresh Taxes, Including Income Tax" Today marks t

 

"The Dawn of a New Fiscal Era: Today Marks the Commencement of the New Financial Year with the Enactment of Fresh Taxes, Including Income Tax"

Today marks the commencement of the financial year 2080/81, signaling the arrival of a fresh fiscal era. As the new financial year unfolds, the government's tax-related measures have sprung into action, weaving a tapestry of changes.

Under the revamped clauses outlined in the Income Tax Act 2058, individuals who earn an annual income surpassing 50 lakh rupees now find themselves subject to a 39 percent income tax, effective from the auspicious day of Shrawan 1st. In contrast, the previous tax regime required those earning over 20 lakh rupees per year to pay a 36 percent income tax.

But there's more to this fiscal transformation. A novel page has been turned as the government introduces the concept of a luxury tax, freshly baked and ready to be served. Enter the realm of the luxury tax, where a humble 2 percent toll awaits those who partake in the lavish offerings of five-star hotels, indulgent restaurants, and opulent resorts. That's not all—the realm of precious metals also falls under its sway, as a 2 percent luxury duty greets those adorned with treasures valued at over 1 million rupees.

In the realm of the budget statement, a symphony of regulations awaits. Imported alcohol and select high-value treasures, such as diamonds, pearls, and exquisite gold jewelry encrusted with precious stones or metals, exceeding a value of 10 lakh rupees, find themselves captivated by the same tax rate. However, these fiscal obligations are exclusive to the enchanting domain of hotels and resorts. Customs duties on imported libations will be collected upon arrival, while purveyors of metallic jewelry exceeding the aforementioned value shall bear the responsibility of collection.

But wait, there's more to this financial spectacle. As the sun rises on this momentous day, a five percent tourism fee joins the ensemble, gracefully accompanying foreign tour packages sold by travel agencies.

Finally, on the day of Jestha 15th, the budget's grand reveal gifted us with a medley of provisions. Customs duties, excise duties, value-added tax, road construction duties, and mobile phone registration all take center stage, each playing its part in the intricate symphony of fiscal transformation.

v "Inland Revenue Department's Struggle: Falling Short of Revenue Target by 23% and Rs. 3 Arba Below Previous Year"

The Inland Revenue Department (IRD) embarked on a financial journey in the last fiscal year, navigating through fluctuating currents and encountering unforeseen twists. Despite setting a target of Rs. 6 Kharba 26 Arba, the IRD's revenue collection amounted to a unique sum of Rs. 4 Kharba 80 Arba, falling short by 23 percent. This figure was also Rs. 3 Arba lower than the revenue collected in the preceding year, revealing a shortfall in their monetary aspirations for the current year (2078/79).

Throughout the fiscal year, the IRD faced multiple hurdles as it strived to surpass its past achievements. The month of Ashad, which was marked by financial reflections, witnessed a decline in revenue. Last year, the IRD attained a collection of Rs. 73 Arba during this period, while this year, the amount settled at a modest Rs. 72 Arba.

By the conclusion of Jestha, the IRD had gathered a sum of Rs. 4 Kharba 8 Arba, falling short by only Rs. 2 Arba in comparison to the previous fiscal year. However, this achievement remained significantly distant from their intended target.

The department's overall revenue objective was hindered by diminished contributions from banks, financial institutions, alcohol, and automobile dealers when contrasted with the previous year's performance.

The journey took a difficult turn from the month of Shrawan onwards. In Shrawan, the IRD collected a sum of Rs. 40 Arba, falling short of the Rs. 43.70 Arba target. Similarly, Bhadra witnessed a collection of Rs. 28.11 Arba, below the anticipated Rs. 31.71 Arba. In Asoj, the amount reached Rs. 27.93 Arba, not meeting the target of Rs. 29.62 Arba.

The challenges persisted, and the department struggled to gather the desired revenue in subsequent months. Kartik saw a collection of only Rs. 29.5 Arba, failing to meet the target of Rs. 35.92 Arba.

In the month of Mangsir, the collection amounted to a mere Rs. 25.74 Arba, substantially below the intended target of Rs. 33.22 Arba.

Poush brought further disappointment, with the collection standing at a mere Rs. 71.31 Arba, a significant shortfall from the target of Rs. 1 Kharba 6 Arba.

In Magh, the IRD managed to gather Rs. 31.5 Arba, falling short of the target of Rs. 39.43 Arba. Comparatively, the previous year's collection for the same period amounted to Rs. 31.26 Arba. Similarly, Falgun witnessed a collection of Rs. 28.98 Arba, failing to reach the target of Rs. 33.11 Arba, while last year's collection for Falgun stood at Rs. 28.48 Arba.

The struggles continued into Chaitra, where the IRD collected only Rs. 55.2 Arba, falling significantly short of the ambitious target of Rs. 83.75 Arba. Baisakh, on the other hand, saw a collection of a mere Rs. 34.46 Arba, failing to meet the set target of Rs. 51.76 Arba.

The challenging journey concluded in Jestha, with the department managing to collect Rs. 36.99 Arba, significantly below the target of Rs. 53.10 Arba.

These numbers serve as a testament to the IRD's arduous voyage, ultimately resulting in a collection of 77 percent of the target revenue. However, this fell short by Rs. 3 Arba when compared to the previous year's collection, leaving the department to grapple with the impact of these figures.