Kathmandu, June 25

Kathmandu Metropolitan City has decided to exempt all businesses from penalty on tax dues for the fiscal 2019-2020.

According to the Finance Bill (2020-2021) tabled by KMC Mayor Bidhya Sundar Shakya at seventh municipal assembly yesterday, a decision was taken to help Kathmandu-based business enterprises severely affected by the COVID-19 pandemic and the subsequent lockdown.

Similarly, if the business enterprises submit property tax to the metropolis by mid-January, they will be entitled to 10 per cent exemption on applicable tax. In yet another decision, buildings to be constructed for vehicle parking will enjoy 100 per cent property tax exemption for five years from the date of operation.

KMC has also proposed to grant 75 per cent exemption to hotels and resorts on property tax for the new fiscal 2020-2021 on the condition that they settle the applicable tax of fiscal 2019-2020. Likewise, house owners, who offer at least one-month rent waiver to tenants, will enjoy 10 per cent exemption on annual rental tax for the fiscal 2020-2021.

As per KMC, traders engaged in hotel, tourism and entertainment sectors inside the metropolis will be entitled to 50 per cent exemption on business tax.

A version of this article appears in e-paper on June 26, 2020, of The Himalayan Times.