Big hotels submit property details

- POST REPORT, Kathmandu

May 28, 2014-

The major hotels based in the Capital submitted their property tax details to their respective wards on Wednesday.

These big hotels, including all the five-star hotels of the Valley, declared the taxable components of their property on the last day of the deadline given by the Kathmandu Metropolitan City (KMC) to submit their property tax details. Now the hotels will be taxed as per the property details they have submitted.  

The metropolis had two weeks back renewed the waste collection service which it had disrupted for seven days following the commitment made by the hotels to clear their taxes by the last week of May. “The cut off date expires today and we have had a positive response from most of the hotels so far,” said Mahesh Kafle, Chief of Revenue Department at the KMC.

Among the 12 major hotels that were asked to submit their property tax details, Soaltee, Hotel Yak & Yeti, Hyatt Regency, Hotel Shanker,  Shangri-La Hotel, Malla Hotel, Hotel Radisson and Everest Hotel have given the details of their properties to be taxed.

“After submitting their property tax details, these hotels have now come under House and Land Tax Provision. We are now hopeful that these hotels would soon clear their property taxes,” added Kafle.

Although the big hotels have abided by the direction and deadline set by the KMC, some of the smaller hotels are still shying away from submitting their property tax details. The defaulters ignoring the 15-day cut off date are Hotel Mountain at Kantipath, Marcopolo Hotel at Kamalpokhari, Royal Singhi Hotel and Landmark Hotel at Durbarmarg.

In order to straighten up the defaulting hotels, KMC has decided to halt waste collection starting Thursday and request the government to freeze their assets.  

“The hotels ignoring our request to submit their property tax details have to face the consequences. If they show no interest in clearing their taxes even after disruption of basic facilities, we will be forced to seal them,” added Kafle. The Section 165(2) of Local Self Governance Act 1999 has given full authority to the metropolis to disrupt basic services in order to recover taxes from the defaulters. The act also enables KMC to collect taxes relating to house and land, business, rent, advertisement and entertainment along with the authority to freeze and auction off the properties of defaulting parties.

In its first stern action against tax defaulting business entities, the KMC had last month sealed the office of a Thapathali-based Trade tower which had Rs 10 million in unpaid taxes.  The housing company paid off a partial amount of Rs 3.5 million and committed to clear the remaining amount by the end of the fiscal year.

The KMC has offered a provision allowing tax payers to pay in installments for amount exceeding Rs 1 million. In January, the KMC had notified house and land owners to clear their taxes within the second week of the month.

Meanwhile, the metropolis has also blacklisted 1,385 commercial complexes in the Valley for defying tax rules for years.

Published: 29-05-2014 09:15

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