Revenue
Performance 2015 – 2016
Overview
for FY 2015-16
With the improvement in
macroeconomic conditions, the net domestic revenue had increased by 11.5
percent in FY 2015-16. The Department collected a gross revenue of Nu
28,541.616 million, refund disbursed during the year was Nu 507. 804 million
and the net domestic revenue was Nu 28,033.812 million. The collection exceeded
the target of Nu 26,293.685 million by 6.6 percent. Domestic revenue covered
the entire current expenditure in addition to 23.8 percent of the capital
expenditure of the government. Net domestic revenue represented 19 percent of
the GDP.
Tax revenue contributed 71 percent to the
total net revenue and the remaining from non-tax revenue. Revenue sources like
Corporate Income Tax, Dividend, Sales Tax contributed 26 percent, 13.5 percent
and 12.7 percent respectively to the total domestic revenue.
Net
Collection vis-à-vis Target
Gross domestic revenue for
the year was recorded at Nu 28,541.616 million, an achievement of 8.6 percent over
the target. As compared to last year, refund decreased by 3.2 percent.
Implementation of the online system RAMIS since 2015 has increased the
efficiency in collection of taxes through better information management.
Summary
of National Revenue FY 2015 – 2016
Sources of Revenue
|
2014 – 2015
|
2015 – 2016
|
( + ) or ( - )
|
% over Total
Revenue
|
Target
|
NU
|
( % )
|
Tax Revenue (I +
II)
|
18387.335
|
19884.626
|
1497.291
|
8.14
|
70.93
|
18390.779
|
Direct
Tax
|
11626.968
|
12200.094
|
573.126
|
4.93
|
43.52
|
11852.286
|
Corporate
Income Tax
|
6488.775
|
7459.579
|
970.804
|
14.96
|
26.61
|
6606.270
|
Business
Income Tax
|
1585.022
|
1175.298
|
(409.724)
|
(25.85)
|
4.19
|
1664.273
|
Personal
Income Tax
|
1536.156
|
1770.362
|
234.205
|
15.25
|
6.32
|
1654.634
|
Other
Tax Revenue
|
2017.015
|
1794.855
|
(222.160)
|
(11.01)
|
6.40
|
1927.109
|
Motor
Vehicle Tax
|
248.252
|
42.853
|
(205.399)
|
(82.74)
|
0.15
|
265.999
|
Business
& Professional Licences
|
104.952
|
87.398
|
(17.554)
|
(16.73)
|
0.31
|
112.000
|
Airport
Service Tax
|
59.129
|
64.143
|
5.014
|
8.48
|
0.23
|
64.941
|
Dzongkhag
Municipal Tax
|
8.453
|
4.242
|
(4.211)
|
(49.82)
|
0.02
|
8.189
|
Health
Contribution
|
32.190
|
57.389
|
25.199
|
78.28
|
0.20
|
0.000
|
Royalties
|
1564.039
|
1538.829
|
(25.209)
|
(1.61)
|
5.48
|
1475.981
|
Indirect
Tax
|
6760.368
|
7684.533
|
924.165
|
(13.67)
|
27.37
|
6538.492
|
Sales
Tax
|
3060.067
|
3576.482
|
516.415
|
16.88
|
12.74
|
3041.819
|
Excise
Duty
|
2686.847
|
2483.068
|
(203.779)
|
(7.58)
|
8.84
|
2445.970
|
Customs
Duty
|
447.401
|
597.392
|
149.991
|
33.53
|
2.13
|
456.349
|
Green
Tax
|
545.870
|
1007.121
|
461.252
|
84.50
|
3.59
|
573.163
|
Other
Indirect Tax Revenue
|
20.182
|
20.469
|
0.286
|
1.42
|
0.07
|
21.192
|
Non – Tax Revenue
|
6753.695
|
8149.186
|
1395.491
|
20.66
|
29.07
|
7902.906
|
Admns.
Fees & Charges
|
350.521
|
714.227
|
363.706
|
103.76
|
2.55
|
368.047
|
Dividends
|
3692.133
|
3785.694
|
93.561
|
2.53
|
13.50
|
3843.322
|
Transfer
of Profit
|
0.0000
|
788.678
|
0.000
|
0.00
|
2.81
|
788.678
|
Revenue
from Govt Departments
|
454.169
|
498.478
|
44.309
|
9.76
|
1.78
|
463.252
|
Capital
Revenue
|
110.062
|
120.450
|
10.387
|
9.44
|
0.43
|
115.566
|
Other
Non – Tax Revenue
|
115.374
|
86.706
|
(28.669)
|
(24.85)
|
0.31
|
126.911
|
Intrst
on Loan from Corporations
|
2031.435
|
2154.954
|
123.519
|
6.08
|
7.69
|
2197.129
|
|
|
|
|
|
|
|
Total Revenue ( A +
B )
|
25141.030
|
28033.812
|
2892.782
|
11.51
|
100
|
26293.685
|
Tax
Revenue :-
Tax revenue contributed 71
percent to the domestic revenue with Nu 19,884.626 million which registered an
increase of 8.1 percent. Although there was increase from both direct and
indirect tax, however indirect tax coupled with increasing imports and revised
tax rates since 2014-15 contributed more to the growth.
A) Direct Tax :-
During the year, the revenue
from direct taxes was Nu 12,200.094 million which was an increase of 4.9
percent. Under this source CIT and PIT performed well. Direct tax contributed
61.4 percent to the tax revenue and 43.5 percent to the total domestic revenue.
1) Corporate
Income Tax ( CIT ) :- CIT
continued as the highest contributor to total revenue with Nu 7,459.579
million. It increased by 15 percent mainly due to increase in taxes from
companies in hydropower, banking, telecom and mining sector. For the income
year (IY) 2015 the total number of corporate units increased to 307 from 286 in
IY 2014. It contributed 26.6 percent to the total domestic revenue.
2) Business
Income Tax ( BIT ) :- Business income tax contributed Nu
1,175.298 million, which was a decrease of 25.9 percent from the previous year.
With the implementation of RAMIS, segregation of tax deducted at source for
various types of taxes has become easier resulting in the change in the pattern
of collection of BIT. Total number of registered BIT units increased from
30,549 in IY 2014 to 30,924 units in IY 2015. BIT contributed 4.2 percent to
the total domestic revenue.
3) Personal
Income Tax ( PIT ) :- PIT collection was Nu 1,770. 362 million,
an increase of 15.3 percent over the previous year. The increase in the number
of PIT payers in addition to the effective assessment carried out with
information captured by RAMIS had also contributed to the increase. The number
of PIT payers increased to 1,07,678 in IY 2015 from IY 71,559 in 2014. PIT
contributed 6.3 percent to the total domestic revenue.
Details of Collection under PIT
Nu
in Million
Personal Income Tax
|
2014 – 2015
|
2015 – 2016
|
% of Total Revenue
|
TDS
on Salary Tax
|
1139.549
|
1480.013
|
5.3
|
TDS
on Rental Income
|
29.342
|
32.436
|
0.1
|
TDS
on Interest
|
43.948
|
18.898
|
0.1
|
TDS
on Dividend
|
112.952
|
72.938
|
0.3
|
TDS
on Income from Other Sources
|
60.494
|
22.933
|
0.1
|
TDS
on Personal Income Tax
|
1386.285
|
1627.218
|
5.8
|
Final
Personal Income Tax
|
246.299
|
248.454
|
0.9
|
PIT
: Fines & Penalties
|
6.423
|
5.975
|
0.0
|
|
|
|
|
Gross
Total
|
1639.007
|
1881.647
|
6.7
|
Refund
|
102.850
|
111.286
|
0.4
|
|
|
|
|
Net
Total
|
1536.156
|
1770.362
|
6.3
|
4) Other
Direct Taxes :- The total of various taxes under this source
amounted to Nu 1,794. 855 million which was a decrease of 11 percent. Major
decline was from motor vehicle tax and royalty from tourism as explained in the
subsequent paragraph. Other direct tax contributed 6.4 percent of the total
domestic revenue.
Other
Direct Tax Collection
Source
|
Amount
|
% of Total Revenue
|
Royalties
|
1538.829
|
5.5
|
Motor
Vehicle Tax
|
42.853
|
0.2
|
Business
& Professional Licences
|
87.398
|
0.3
|
Airport
Service Tax
|
64.143
|
0.2
|
Dzongkhag
Municipal tax
|
4.242
|
0.0
|
Health
Contribution
|
57.389
|
0.2
|
Total
|
1794.855
|
6.4
|
Royalties :- Total
contribution from the four source of royalties amounted to Nu 1,538.829
million. Royalty from tourism contributed Nu 1,161.767 a decrease of 11.9
percent. In the previous fiscal year the royalty from tourism which included
the Thai tourist package had brought in significant royalty. Comparatively, the
arrival of international tourist during the current year declined. Royalty from
forest products amounting to Nu 56.877 million had a nominal increase of 2.6
percent. Royalty from mines & minerals brought in Nu 231.416 million, an
increase of 31.7 percent. Royalty from hydropower was recorded at Nu 88.769
million from Dagachhu hydropower plant. Although royalty from three other
sources increased, it could not offset the decline in tourism royalty. Revenue
from Royalties contributed 5.5 percent to the total domestic revenue.
Collection
from Royalties
Sources
|
FY 2015 - 2016
|
FY 2014 – 2016
|
( + ) or ( - )
|
% to Total Revenue
|
Royalties from
Tourism
|
1161.767
|
1319.277
|
( 157.51 )
|
4.1
|
Royalties from
Hydropower
|
88.769
|
13.571
|
75.20
|
0.3
|
Royalties from
Mines
|
231.416
|
175.751
|
55.66
|
0.8
|
Royalties from
forest
|
56.877
|
55.440
|
1.44
|
0.2
|
Total
|
1538.829
|
1564.039
|
( 25.21 )
|
5.5
|
Motor Vehicle Tax :- Motor vehicle tax amounted
to Nu 42.853 million which was a decrease of 82.7 percent. The adoption of the
chart of accounts as per Government Finance Statistic 2014 developed by IMF to
classify the various sources of revenue under specific categories has changed
the pattern of the record of such collection. The motor vehicle registration
fees which used to be earlier recorded under motor vehicle tax is now reflected
under motor vehicle fees and charges. Motor vehicle tax contributed 0.2 percent
to the total domestic revenue.
Business and Professional
License :- Revenue collection under this source was Nu
87.398 million, a decline of 16.7 percent. Revenue from business and
professional license constituted 0.3 percent of the domestic revenue.
Dzongkhag Municipal Tax :-This revenue source
contributed Nu 4.242 million which was 0.02 percent of the domestic revenue. It
has declined by 49.8 percent. It is likely to decline in future if more
Dzongkhags are converted to Thromdes due to administrative and financial
decentralization of Thromdes.
Health Contribution :-
Gross collection of health contribution was Nu 197.605 million. It constituted
0.2 percent of the domestic revenue.
Airport Service Tax :-
Collection under this tax has increased by 8.5 percent to Nu 64.143 million.
The increase can be attributed to the increase in the number of passengers.
This tax constituted 0.2 percent of the total domestic revenue.
B)
Indirect
Tax :-
With the introduction of tax
measures from July 2014 and the lift of import ban on selected commodities,
revenue from indirect taxes had significantly increased. As compared to 2014,
imports from India and countries other than India increased by 19.6 percent in
20153 . Indirect tax collection during the year was Nu 7,684.533 million which
shows an increase of 13.7 percent from the previous year.
1) Sales
Tax :- Sales Tax increased by 16.9 percent to Nu 3,576.482
million. Sales tax collected from good & commodities, beer, aerated water
& alcoholic drinks and telecom services contributed to the increase. there
was decrease in the global price of fossil fuel during the year which decreased
the Sales Tax from petroleum products by 39.5 percent. Sales Tax contributed
12.7 percent to the total domestic revenue.
Collection from Sales Tax
Source
|
Amount
|
% of Total Revenue
|
Sales
Tax on goods (point of entry & sale)
|
2029.540
|
7.2
|
Sales
Tax on Bear, alcoholic drinks & aerated water (point of sale)
|
793.925
|
2.8
|
Sales
Tax on Petroleum Products (point of Entry)
|
234.065
|
0.8
|
Sales
Tax on Hotels (services)
|
317.530
|
1.1
|
Sales
Tax on Cable/TV cinema (services)
|
23.323
|
0.1
|
Sales
Tax on Telecom Services (services)
|
178.099
|
0.6
|
Total
|
3576..482
|
12.7
|
2) Excise
Duty :- Excise Duty contributed Nu 2,483.068 million which
constituted 8.9 percent of the total domestic revenue.
3) Excise
Duty from Distillery products :- With the launch of new
products and re-engineering their marketing strategies, AWP had performed well
during the year increasing its revenue by 12 percent to Nu 539.079 million. It
contributed 1.9 percent to the total domestic revenue.
4) Excise
Duty Refund from GoI :- Excise
Duty receipt in FY 2014-15 was for the year 2013 amounting to Nu 1,756.537
million and arrear for past year of Nu 449 million. Excise Duty refund receipt
in FY 2015-16 was for the imports pertaining to the year 2014 amounting to Nu
1,943.989 million. Excise duty refund from GoI constituted 6.9 percent of the
total domestic revenue.
Tax Collection from Excise Duty
Source
|
2014 – 2015
|
2015 – 2016
|
% of Total Revenue
|
Excise
Duty Refund from GoI
|
1756.537
|
1943.989
|
6.9
|
Arrears
of past years
|
449.000
|
0.000
|
0.0
|
Excise
Duty on Distillery Products
|
481.311
|
539.079
|
1.9
|
Total
|
2686.848
|
2483.068
|
8.9
|
5) Customs
Duty :- Revenue from Customs Duty amounted to Nu 597.392
million, which was an increase of 33.5 percent. Trade with countries other than
India (COTI) increased by 58.2 percent from the past year resulting in the
significant increase in collection. Customs duty constituted 2.1 percent of
total domestic revenue.
Particulars
|
Year 2015
|
Year 2014
|
% (+) or (-)
|
Trade
with India
|
|
|
|
Total
Imports with electricity
|
53740.500
|
47847.622
|
12.3
|
Total
Imports without electricity
|
53490.850
|
47528.600
|
12.5
|
Trade
with COTI
|
14296.820
|
9036.920
|
58.2
|
Total
Imports with electricity
|
68037.320
|
56884.542
|
19.6
|
Total
Imports without electricity
|
67787.670
|
56565.520
|
19.8
|
6) Green
Tax
:- During the year, Green Tax contributed Nu 1,007.121 million an increase of
84.5 percent. Of the total Green Tax, vehicle import contributed Nu 659.383
million and 174.340 million litre of fuel import contributed Nu 347.738
million. Green Tax contributed 3.6 percent of the total domestic revenue.
7) Other
Indirect Tax Revenue :- Total revenue collected from other indirect
tax revenue was Nu 20.469 million which was a increase of 1.4 percent. It
constituted 0.07 percent to the total domestic revenue.
Non – Tax Revenue
With
a collection of Nu 8,149.186 million, non-tax revenue contributed 29 percent of
the domestic revenue. Revenue under this source increased by Nu 1,395.491
million mainly from RMA’s transfer of profit, Adm. fees & charges and
Interest on loan from corporations.
Comparison of Non – Tax Revenue for
Fiscal Year
Source
|
FY 2015 – 2016
|
FY 2014 – 2015
|
% (+) or (-)
|
% of Total Revenue
|
Admn,
fees & charges
|
714.227
|
350.521
|
103.8
|
2.5
|
Dividends
|
3785.694
|
3692.133
|
2.5
|
13.5
|
Transfer
of Profits
|
788.678
|
0.000
|
0.0
|
2.8
|
Pevenue
from Govt. Departments
|
498.478
|
454.169
|
9.8
|
1.8
|
Capital
Revenue
|
120.450
|
110.062
|
9.4
|
0.4
|
Other
Non – Tax Revenue
|
86.706
|
|