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3.1
Tax Revenue 
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The net tax
revenue collection for FY 1998-99 is Nu. 1,459.566 millions, showing a
growth of 3.64% over the last year's collection of Nu. 1408.349
millions. This is due to the improved performance of financial, service,
manufacturing and power sectors. The contribution of tax revenue to
total national revenue covers 41.14% during the fiscal year 1998-99.
The net
collection under direct taxes for the FY 1998-99 amounted to Nu. 913.920
millions recording a growth of 10.0% over the last year's collection of
Nu. 830.858 millions, covering 62.6% of total tax revenue and 25.76% of
total national revenue.
Corporate
Income Tax (CIT)
Net CIT
collection of Nu. 594.342 millions recorded a growth of 6.33% over last
year's collection of Nu. 558.976 millions. This accounts for 16.75% of
total national revenue. The increase is mainly due to the timely tax
assessment/audit carried out in major corporate units.
Business
Income Tax (BIT)
The net
collection under business income tax amounted to Nu. 71.924 millions,
registering a growth of 11.35% over the last year's collections of Nu.
64.592 millions. This is mainly due to the improved tax compliance from
the business sector as a result of enforcement measures taken by
respective RRCOs.
Royalties
The net
Royalty collections amounted to Nu. 193.743 millions registering a
growth of 19.37% against last year's collection of Nu. 162.303 millions.
This mainly due to better compliance by the Tourism Sector.
Rural Tax
The rural
tax collections amounted to Nu. 6.814 millions showing a decline of
10.25% over the last year's net collection of Nu. 7.592 million. This
decline is due to the recovery of outstanding made in the previous year.
Rural Tax comprises of 0.2% of total national revenue.
3.2.1
Indirect Taxes
The net
indirect taxes for the FY 1998-99 amounted to Nu. 545.646 millions,
which is a decrease of 5.51% as compared to the last year's collection
of Nu. 577.491 millions. This covers 37.4% of total tax revenue during
the fiscal year and 15.38% of total national revenue. This is mainly due
to substantial increase in collection from Bhutan Sales Tax, Import Duty
and Motor Vehicle Tax.
Bhutan
Sale Tax
Net BST
collections increased to Nu. 224.492 millions against last year's
collection of Nu. 206.181 millions recording a growth of 8.88% for the
year. The increase in collection is the result of increasing economic
activities and introduction of BST on third country imports from
September 1998.
Excise
Duty
Net Excise
duty collections amounted to Nu. 184.67 millions recording a decline of
30.6% over last year's collections of 266.223 millions. This decline is
mainly due to non-receipts of excise duty refund from GOI. Further there
has been a slight decline of 2% in the collection of excise duty of AWP
products due to continuous disturbances in bordering areas mainly in
Assam.
Motor
Vehicle Taxes
The net
collection on motor vehicle taxes amounted to Nu. 45.155 millions
showing an increase of Nu. 10.687 millions over the last year's net
collection of Nu 34.468 millions recording a growth of 31%. This is due
to the increase in the number of vehicles.
Import
Duty
The net
collection on this front reached to Nu. 44.171 millions showing a
substantial increase of 42.86% over the last year's collection of Nu.
30.918 millions. The achievement is mainly due to the import
liberalization policy of the RGOB and an increase in the volume of third
country imports.
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3.3
Non-Tax Revenue
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Non-Tax
Revenue collections (net) during the fiscal year 1998-99 reached Nu.
2,087.927 millions registering a growth of 28.28% against the last
year's collection of Nu. 1,627.605 millions. The non-tax revenue, which
covers 58.86% over the total national revenue, has increased mainly
because of higher dividend receipts from Chukha Hydro Power Corporation,
Penden Cement Authority Ltd. Bhutan National Bank and Bank of Bhutan,
arrears receipts from operation surplus of Royal Monetary Authority and
sale proceeds of Penden Cement Authority LTD. Shares as well as interest
on loan from corporations.
Revenue
from Government Departments
The net
revenue from the Government Departmental agencies continued to be a
major source of revenue for RGOB. The collection during the year has
reached Nu. 445.547 millions recording a growth of 8.5% over the last
year's collection of Nu. 410.557 millions. It constitutes 12.56% of the
total national revenue. The increase on this front is mainly due to
improved collection system adopted by the government service sectors
like Telecom and Power Division.
Dividends
Net dividend
receipts from the Government share holdings in corporations during the
year have reached Nu. 970.612 millions recording a growth of 5.37%
against the last year's receipt of Nu. 921.114 millions. This is mainly
due to dividend receipts from BNB and with this covers 27.36% of total
national revenue.
Transfer
of Profits
The net
transfer of profits from Public & Joint sector enterprises increased
to Nu. 526.358 millions or 225% as compared to the previous year's
receipt of Nu. 162.157 millions. This is due to the receipt of Nu.
367.651 millions towards arrears operational surplus received from RMA
and Nu. 61,707 millions towards interest of loans from corporations
received through NBACD.
Capital
Revenue
Net revenue
collection from sale of Government assets by Public Works Division and
Division of National Properties and sale of PCAL shares amounted Nu.
86.298 millions showing an increase of 9.57% against the last year's net
sales of nu. 78.760 millions. Capital revenue comprises of 2.43% of the
total national revenue. Though it has registered a growth of 9.57% there
has been a decline in timber plantation and thinning by 40% due to
scaling down of forestry logging activities as per government policy.
ADM fees
& Charges
Net revenue
collection under this head amounted to Nu. 56.821 millions, showing an
increase of 10.23 % over the last year's net collection of Nu. 51.5436
millions. The increase is due to better enforcement measures taken by
the concerned agencies for timely collections and deposits.
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4
SECTORAL REVENUE
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The
enhancement of revenue in major sectors of the economy for the FY
1998-99 was led by Finance (244.59%) followed by Service (17.23%) and
manufacturing (37.62%) over the total gross revenue. However, the
revenue from Primary and Trade have declined as compared t the last
year.
4.1
Highlights of Revenue by Sectors
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General Section
