tax collection drive

  • After hotels, KMC chases educational institutions now
- POST REPORT, Kathmandu

Jun 1, 2014-

After a successful drive against hotels involved in property tax default, the Kathmandu Metropolitan City (KMC) has now focused its attention on Capital-based educational institutions and cooperatives that have been ignoring its repeated calls and warnings to clear the outstanding taxes.

KMC officials say the metropolis plans to formally instruct the institutions from this week to clear the house and land taxes which have not been paid for over a decade. The KMC is currently preparing a list of schools and cooperatives that have refused to pay taxes for a long time, the officials say, adding that they will soon be  writing to the institutions requesting to clear their dues.

 “A number of schools, cooperatives and education consultancies are currently under scrutiny. We have already issued verbal warnings to those who are yet to clear their property taxes,” said Mahesh Kafle, chief of  KMC’s Revenue Department.

The metropolis estimates around 140 cooperatives and more than 200 schools have not complied with the metropolis’ tax criteria.

After KMC’s recent crackdown on property tax defaulters, the major hotels in the Capital, including all the five-start hotels, pledged to clear the dues after declaring the taxable components of their property. The metropolis resumed the waste collection service to the hotels only a few weeks ago.

The blacklisted hotels alone owe the metropolis an estimated Rs 100 million in uncollected taxes.

The Section 165(2) of Local Self Governance Act 1999 authorises the metropolis to stop basic services in order to recover taxes from the defaulters. The Act also enables the 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 the defaulters.

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 Rs 3.5 million and committed to clear the remaining amount by the end of this fiscal year. The KMC has offered a provision allowing tax payers to pay in installments for amount exceeding Rs 1 million.

Published: 02-06-2014 11:31

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