Kathmandu Metropolitan City Starts Market Monitoring for House Rent Tax and Business Renewals
Kathmandu Metropolitan City (KMC) has initiated a drive to oversee market activities related to house tax payments and business registration renewals. The program, known as the 'Monitoring Team Mobilization Program 2080,' consists of three teams comprising city officials, employees, and revenue department personnel.
The teams will be visiting shops and complexes to verify house maintenance tax and other municipal dues. KMC aims to both thank compliant taxpayers and identify those who are not in compliance.
While conducting a supervision visit to New Road, Ramji Shrestha, the Revenue Officer of KMC, observed problems related to the renewal of business registrations and payment of house tax. It was noted that businesses must pay house tax to both the national government and KMC. Shrestha highlighted a discrepancy between the reported and actual rent paid, indicating the necessity for KMC to contemplate collecting house tax according to the actual rent.
City Police Inspector Ishwar Prasad Wagle reported finding businesses that had renewed their contracts at a lower rent than the market rate. For instance, a business reportedly paid only 26,000 NPR in reinstatement tax over the past seven years, despite rents in New Road reaching up to 4,000 NPR per shutter. Wagle emphasized that KMC charges a 10% reinstatement tax and that some shops appeared to be avoiding renovations.
The monitoring teams have submitted their reports to KMC, which will now take action against non-compliant businesses according to regulations. KMC has also issued a "Restoration Procedure Procedure" to streamline the reinstatement tax process.
