Revenue Department of Kathmandu Metropolitan City has expedited market monitoring to bring all house owners and entrepreneurs under the tax net.

According to the metropolis, the ongoing market monitoring follows the tendency of house owners and entrepreneurs to either evade or undervalue tax under the existing local level law.

House owners and entrepreneurs are obliged to pay rent tax and business tax respectively.

During the monitoring, dozens of house owners and businesspersons of New Road, Lazimpat and Maharajgunj areas have been directed to present themselves before the department within seven days. KMC warned that some house owners had claimed to be renting out shutters of the same house for different amounts with the intention of showing less tax payable to the metropolis.

"Some owners said that they were receiving Rs 10,000 as rent for one shutter, while receiving Rs 20,000 for another shutter in the same house.

Likewise, the owner of an adjoining house had been receiving rent of Rs 40,000 in Maharajgunj. We have taken such a huge difference in rent seriously and will conduct an inquiry before initiating action as per the law," Shivaraj Adhikari, chief of the department, informed.

The department said that there were less number of house owners paying rent, compared to those paying business tax. The monitoring team of KMC comprises ward representatives, municipal police, department and ward officials.

Recently, KMC had introduced tax e-payment system.

The online system has been well-received by citizens, as they no longer have to queue up at the office for payment. Likewise, the metropolis decided to exempt all businesses from penalty on tax dues for the fiscal 2019-2020 to help Kathmandu-based business enterprises severely affected by the COVID-19 pandemic and the subsequent lockdown.

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.

source: the himalayantimes, 24 march 2021