Over 200,000 taxpayers do not regularly pay tax to KMC

Published On: February 29, 2024 10:30 AM NPT By: Republica | @RepublicaNepal

KATHMANDU, Feb 29: It has been found that around 200,000 taxpayers are not regularly paying their taxes at the Kathmandu Metropolitan City (KMC).

According to the sources, 200,000 out of 312,000 taxpayers registered at KMC are found not regularly paying tax.

According to KMC Revenue Department, the metropolis is preparing to ramp up ward-level monitoring to bring the taxpayers dilly-dallying to pay tax without coming to the registration process for a long time in accordance with the rules.

About 100,000 taxpayers are among those showing reluctance to pay rent related taxes. Similarly, the number of taxpayers found unwilling to pay business tax, entertainment tax and advertisement tax exceeds 100,000, said KMC Revenue Department Chief Dhruba Kafle.

According to him, the KMC is preparing to bring the unregistered taxpayers of all categories to the process by regularly monitoring from this month onward to increase tax compliance.

Furthermore, Kafle said that KMC is striving to recover arrears totaling Rs 2 billion from registered taxpayers, which have accumulated over the past 12 years.

Despite setting an annual revenue target of Rs 10.80 billion for the current fiscal year, KMC has only managed to collect Rs 5.80 billion in the first eight months.

Although revenue collection remained satisfactory during the initial six months, there has been a decline in revenue for the last month (mid-January to mid-February 2024) compared to previous months.