But many of the big industrial groups have shown reluctance to pay taxes despite repeated written instructions from the municipality, according to Nathu Sah, chief executive officer of the municipality. "In lack of the much needed income, the municipality has not been able to implement various developmental plans," added Sah.
Gadhimai, which was declared a municipality two years ago, has 16 wards. Places like Birgunj, Pathaliya, Jitpur, Simara, among others, fall under the municipality.
Officials say that lands in the municipality are highly expensive and proper collection of land taxes could generate huge income for the municipality.
"The municipality could collect about Rs 50 million from lands and houses in the municipality alone. Our inability to collect taxes has been costing us dearly," added the municipality's chief executive officer Sah. "But we will soon start acting tough against tax evaders," he informed.
Ghan Shyam Giri, chairman of the Jitpur-chapter of Confederation of Nepalese Industries (CNI), said the institution has urged the entrepreneurs operating within the municipality to pay their taxes in a timely manner.
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