KATHMANDU, Aug 9: The income collected by the Kathmandu Metropolitan City (KMC) towards institutional house rent taxes has increased. In the last fiscal year 2079/80 BS, the KMC collected revenue of Rs 10.25 billion.
In the fiscal year 2078/79 BS, the metropolis collected Rs 10.41 billion in revenue. Although the internal revenue has increased as per the target as compared to the previous financial year, the overall revenue has decreased due to the decrease in the allocation and subsidy from the federal and state governments of the metropolis.
Although the subsidy amount is less compared to the last fiscal year, the internal income was recovered by 1 billion 36 million rupees, said the Head of the Revenue Department of the KMC Dhurba Kafle. According to him, the metropolis collected Rs 570 million more than the internal revenue target. Of the total amount, the highest amount of rent tax is Rs 2.56.
Kafle said that Rs 8.08 billion was collected in property tax and Rs 580 million in business tax. Similarly, revenue of more than Rs 101 million has been raised from the approval of house design. KMC has collected 30 percent more internal revenue compared to the previous year.
The metropolis, which managed to collect Rs 4.46 billion of internal revenue in the fiscal year 2078/79 BS, has collected 5.82 billion in the fiscal year 2079/80 BS.
KMC has been collecting revenue under various 36 headings including property, real estate, rent, business and entertainment. In the Intergovernmental Fiscal Arrangement Act, 2074 BS, 70 percent of the amount rose from value added tax (VAT) and internal excise duty is distributed to the central government and 15/15 percent to the provincial and local levels.
In the last fiscal year, the metropolis received Rs 1.58 billion after distribution.
Kafle said, "This indicates a decrease of Rs 1.68 billion compared to the previous year. The previous year received about Rs 3.55 billion.”