The call made by the office has, however, faced protests from local businesspeople, who instead of cooperating with officials are saying the drive has created a panic among them. [break]
A provision in the Local Self-governance Act 1998 makes it mandatory for local businesses to regularly pay property tax. But majority of around 500 hotels, 200 boarding schools and hundreds of other firms operating in the western Nepali city have failed to adhere to this rule. Because of this, the Office of Pokhara Sub-metropolis is losing at least Rs 160 million per year in revenue.
To teach tax evaders a lesson, Jhalak Ram Adhikari, the chief executive officer of the Office of Pokhara Sub-metropolis, has vowed to tighten his grip on local business organizations that are defaulting property tax payment.
Adhikari also vowed to bring any firm under the tax purview and go to the extent of closing enterprises that ignore his office´s calls.
"Big hotels, boarding schools and some other firms that have annual transactions of millions of rupees have been defaulting on property tax payment since their establishment. It is ridiculous to launch a protest as we have already issued numerous ultimatum”," Adhikari added.
Adhikari also said that his office was in no mood to enter into another round of discussion with tax defaulters on the topic.
In the first phase of drive to recover due tax amount, the Office of Pokhara Sub-metropolis has already corresponded with 26 star-hotels and 56 boarding schools, which are among the largest property tax evaders in the city. This includes big hotels like Fulbari, Pokhara Grand and Dragon.
However, they have failed to respond to the office´s call. The office is now preparing to suspend business activities of firms that have failed to heed the office´s instruction.
Local business people, on the other hand, said the Office of Pokhara Sub-metropolis has created a panic among business establishments in Pokhara through abrupt launch of tax recovery campaign.
The Paschimanchal Hotel Association Pokhara (PHAP), an umbrella body of around 300 local hotels, is among those that has protested the move.
Hari Prasad Sharma, president of the association, said: "We are against this move because the information was not relayed to us on time." He also claimed that the campaign launched by sub-metropolis office will have negative impact on Pokhara´s tourism.
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