KATHMANDU: Star hotels operating in the Capital are gradually improving in their compliance with their tax duties.

The Kathmandu Metropolitan City (KMC) has started legal action against hotels for tax evasion, forcing even the renowned hotels to submit details related to tax.

KMC Revenue Division Chief, Dhruba Kafle, said the Hotel Everest, the Yak and Yeti and the Hyatt Hotel have arrived at the Municipality with details for submission of tax.

The Radisson Hotel, the Hotel Shanker, the Shangri-a, the Malla Hotel and the Yak and Yeti Hotel are other hotels to arrive with details.

The hotels are required to make payments on tax including land property tax, rental tax, vehicle tax and commercial tax.

"Many hotels have submitted the tax, but still many are resorting to evasive manoeuvres following the decision to take action," Kafle said.

The Soaltee Crowne Plaza has submitted taxes on all the topics while the Hotel Annapurna is yet to submit the automobile tax.

The tax range of the hotels on an average amounts to Rs 1 to 1.2 million a year if they submit it on a regular basis.

The KMC under the Section 165 and 920 of the Local Self-Governance Act, 1999 is required to freeze the movable and immovable assets, stop renewal of license, halt rubbish collection and seal the trade transactions among others if any company fails to comply with tax duties.