Enterprising KMC aims to boost tax revenue

Kathmandu, January 7:

Kathmandu Metropolitan City (KMC) has planned to come up with a special ‘business tax package’ to bring business enterprises in the KMC within its tax threshold and encourage the tax payers to pay the revenue regularly on time.

“We will waive the existing tax liabilities of new tax payers if they want to pay their tax by mid-April,” said Nama Raj Dhakal, section chief at Revenue Planning and Monitoring Section (RPMS) under the Kathmandu Metropolitan City. Dhakal expected that the package would help the metropolis increase its revenue collection and maintain record of business enterprises in the metropolis.

“We are preparing a directive on business tax package to make the tax collection process simple and transparent. It will also help bring more business entrepreneurs within the KMC’s tax threshold,” Dhakal said, adding that the Kathmandu Metropolitan City will also publish a brochure, to encourage the tax payers pay off their tax on time, within a month.

According to the existing provision, business enterprises in the metropolis should be registered with the Kathmandu Metropolitan City and they should also renew their enterprises annually.

“But due to the lack of strong policy and proper mechanism, the revenue collection is suffering,” Dhakal said.

Dhakal further said, “We are still working as per the policy of 1962 on land and house. Since we don’t have policy on apartment system, the revenue collection has been affected.” Stressing the need to introduce ‘one door tax system’, Dhakal said it would help make the process easier and systematic.

He added that the Kathmandu Metropolitan City was having problem in business tax collection because of the lack of proper coordination with other concerned government authorities.