KATHMANDU, March 13: The Kathmandu Metropolitan City (KMC) has begun removing advertisement boards installed at bus stops after the contractor failed to renew its agreement and clear outstanding payments within the stipulated time.
According to officials, the advertisements had been installed at 39 bus stops under a public–private partnership by Trilok Structure Pvt. Ltd.. Following the expiration of the contract, the metropolitan office has started dismantling solar-powered advertising structures at 25 of those bus shelters.
Chief of the Kathmandu Metropolitan Police, Bishnu Prasad Joshi, said the city took action after the contractor failed to respond even after the agreement period ended.
KMC removes unauthorized boards placed in offices and shops
“After receiving a letter from the Revenue Department instructing us to remove the advertisement boards and prevent further installations that violate the agreement, we began the removal process,” Joshi said, adding that the campaign will continue.
The city had first signed the agreement with the company on September 30, 2012 . It was renewed twice—first on April 8, 2015 and again on August 9, 2021.
Senior Revenue Officer Pradeep Koirala said the contractor also failed to pay revised advertisement taxes as required under the latest agreement. The company was notified on April 24, 2025 to clear the increased amount but has yet to comply.
According to Koirala, a total of Rs 1,613,224 remains unpaid, including Rs 1,583,939 in advertisement tax and Rs 29,285 in unpaid royalty.
The advertisement tax rate had increased over the years—from Rs 700 per square foot in fiscal year 2021/22 to Rs 1,000 per square foot in fiscal year 2023/24.
Municipal authorities said the removal of the advertising structures will continue until all unauthorized boards installed under the expired contract are cleared.