‘Not the tenants but house owners should pay House Rental Tax’

Published On: December 10, 2023 03:00 PM NPT By: Basanta Dhungana

CHITWAN, Dec 10:  Generally, the house rental tax is to be paid by the house owner. However, landlords in Bharatpur let tenants pay the house rental tax.

The Chamber of Commerce and Industry Chitwan (CCIC) has come out against this practice. The chamber has appealed to landlords to pay commercial shutters and house rental taxes.

CCIC submitted a memorandum to Bharatpur Metropolitan City and appealed to house owners to pay the tax. President of the chamber, Chun Narayan Shrestha, said that it is a universal principle that those who earn income should pay tax and requested not to add a tax burden on businessmen.

"Now, businesses are in crisis due to the economic recession," he said.

He mentioned that the house rental tax will be submitted to the local level and the Internal Revenue Office. Corporate tax is submitted to the Internal Revenue Office. According to local law, 10 percent of the house rental tax income is charged. He suggested that this tax is too high and should be reduced to seven percent.

Bharatpur Metropolitan City has informed that the collection of house rental tax has been low in recent times. Chitrasen Adhikari, deputy mayor of the metropolis, said that due to landlords and businessmen, the house rental tax has been reduced.

He said that the metropolis is ready to effectively carry out the campaign of house-to-house rent tax collection. He emphasized that Bharatpur metropolis encourages paying house maintenance tax to house owners rather than tenants.

Adhikari said that the house rental tax will be made effective to increase the internal income of Bharatpur Metropolis.

The metropolis has collected Rs 34.9 million in the first quarter of this fiscal year. This is an increase of 28.44 percent over the previous year. In the same period of the previous fiscal year, the revenue of Rs 27.2 million was collected. Rs 7.7 million more is collected in this fiscal year than the previous fiscal year.

Bharatpur metropolis has been collecting revenue under 21 headings. So far, the internal income of the metropolis is Rs 319 million. It seems that the main income of the metropolis is house rental tax, followed by property tax, with Rs 34.2 million collected.

Internal revenue of Bharatpur metropolis has decreased due to administrative fines, house design pass fees, and parking fees. Revenue from map pass fees has decreased by 1.8 million rupees.

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