Volume 8, Issue 3, June 2019, Page: 85-96
Role of Tax Towards Government Revenue of Nepal
Pravesh Ghimire, Nepal Commerce Campus, Faculty of Management, Tribhuvan University, Kathmandu, Nepal
Received: Mar. 25, 2019;       Accepted: May 6, 2019;       Published: May 29, 2019
DOI: 10.11648/j.ijber.20190803.12      View  104      Downloads  30
A modern government collects required funds through different sources; mainly from revenue and debt. Among different sources, taxation is the most important sources of government revenue and Gross Domestic Product (GDP) of a nation. In this paper, an attempt has been made to examine the contribution of tax revenue to GDP and government revenue of Nepal. The main questions addressed for the study were to find the proportion of tax in government revenue collection and to know whether the resource gap of Nepal is in increasing or decreasing trend. This study is mainly based on secondary data collected from government sources. Nationwide data of both direct and indirect taxes, total government revenue and GDP for the period of last fifteen years from F/Y 2002/03 to F/Y 2016/17 have been taken for the study. In order to assess the contribution of tax revenue on government revenue and GDP, co-relation and multiple regression analysis have been done separately and the results have been verified by using test statistics (t-test and f-tests). Similarly, to observe the long-term growth of tax revenue, time series analysis has been done by using straight line trend method. The study has concluded that GDP and government revenue have been strongly related with direct and indirect tax revenues of Nepal.
Contribution of Tax Revenue (TR), Gross Domestic Product (GDP), Government Revenue (GR), Direct Tax (DT), Indirect Tax (IDT), Co-relation, Multiple Regression, Time Series Analysis
To cite this article
Pravesh Ghimire, Role of Tax Towards Government Revenue of Nepal, International Journal of Business and Economics Research. Vol. 8, No. 3, 2019, pp. 85-96. doi: 10.11648/j.ijber.20190803.12
Copyright © 2019 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/) which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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