Kathmandu Metropolitan City has said it would take action against Kanchanjunga Housing if the latter did not pay the outstanding house and land taxes by Wednesday.

The metropolis could close down the Thapathali-based Trade Tower owned by the housing company for defaulting on tax, said Mahesh Kafle, the chief of Revenue Department of the KMC.

“We will be forced to take action as the company has repeatedly ignored our calls to clear the pending taxes,” Kafle said, adding that they have already informed the concerned authorities for their presence when KMC seals off the Trade Tower.

The housing company has not paid the taxes (an amount of more than Rs 10 million) for more than three years.

  Binaya Upadhyay, a representative of the housing company, said they are willing to pay the business tax but not the house and land taxes, arguing that the Trade Tower has been leased out to the Nepal Food Corporation making it responsible for paying the taxes. 

 Kafle said that the deal between the housing company and NFC is not clear on who should pay the house and land taxes.

“Kanchanjunga Housing took KMC’s permit for the construction of the Trade Tower. So the company is liable for payment of the taxes” said Kafle.

source: the kathmandu post,8 april 2014