KATHMANDU, Jan 3: Kathmandu Metropolitan City (KMC) Mayor Balendra Shah (Balen) has blamed the provincial government for a significant decline in the city’s revenue. Speaking at the FY 2024/25 audit entry meeting on Thursday, Mayor Balen accused the provincial government of amending the provincial Finance Act irresponsibly, which has reduced revenue from entertainment taxes.
“Through irresponsible amendments to the Finance Act, the provincial government has slashed the revenue local governments used to receive from entertainment taxes,” said Mayor Balen.
Citing examples, he said that revenue from the Skywalk tax had dropped significantly. “Earlier, there was a 5 percent tax on the Skywalk, generating Rs 2.386 million annually. Now, it has been reduced to Rs 50,000 annually, causing a direct loss of Rs 2.33 million,” he said.
Deputy Mayor Dangol raises questions about Mayor Balen's workin...
Similarly, he mentioned that the casino tax, previously set at 5 percent of expenditures, is now fixed at Rs 50 per ticket. Revenue from fairs, festivals, concerts, and circus events, which previously had a 5 percent entrance tax, has now been capped at Rs 15,000 per day, further reducing income.
“How will such policy-level corruption be addressed during the audit?” he questioned auditors, “With this revenue decline, the metropolis has been unable to allocate budget for promoting cinema, arts, and creative programs,” he said.
Mayor Balen also criticized the federal government for collecting rent taxes, which he claimed is an exclusive right of local governments as per the constitution. “This has also impacted the city’s revenue. Such policy issues should also be highlighted during the audit,” he said.
He said that suggestions from regulatory bodies on financial discipline have been implemented from the planning and program formulation stage.
