KATHMANDU, Aug 21: Kathmandu Metropolitan City (KMC) has reduced house rent tax by two percent.
Issuing a press release on Tuesday, KMC has said that it has reduced the house rent tax from 12 percent to 10 percent effective from this ongoing fiscal years 2018/19.
The metropolis had been levying 12 percent on the house rental income in the last fiscal year.
IRD asked to return institutional house rent tax to KMC
However, the landlords have been charging exorbitantly high rent on the rooms hired by tenants, leaving especially the students largely affected.
Aside from house rental income tax, the KMC has also cut tax levied on various government services that includes infant treatment fee, citizenship recommendation fee, court fee, scholarship provided at home, poor students, handicapped, disaster-hit buildings recommendation fee, ect.
Similarly, the KMC will not be charging any on vital registration and other kinds of recommendation but it would be effective only within 35 days of the happenings.
The KMC has also heavily decreased the taxes for recommendation of citizenship certificate to those seeking marital naturalized citizenship. The KMC was charging Rs 10,000 for the same in the previous years and has made Rs 500 only in this fiscal year.
The KMC has reduced the taxes charged for the recommendation to operate the business. The tax has been reduced by 50 percent from Rs 2,000 to Rs 1,000.
The land registration recommendation charge has also been lessened to Rs 3000 from Rs 5,000.
