78 per cent evading tax levied on rental charges in KMC

KATHMANDU: Only 22 per cent of the total number of households in the Capital city has been paying tax levied on rental charges.

According to the KMC Revenue Division Chief Dhruba Kafle, 78 per cent of the property owners in the Valley have been evading rental tax due to the lack of substantive legal provision.

The tenants and the property owners have been in verbal agreement in connection to the rent charged on the tenants. "Such works are not done on the basis of any legal status," he added.

Kafle said the revenue collection from the property owners have increased to some level as those leaving for foreign countries must pay the tax and tariff levied on property, electricity, water and other facilities.

The property owners must submit two percent of the total amount of rent charged on tenants to the KMC, which has been raising an annual Rs 120 million under the topic.

The KMC has no legal footing on taking action on house owners due to the lack of legal provision on tax levied on rental charges.