KATHMANDU, Jan 12: Kathmandu Metropolitan City Mayor Balendra (Balen) Shah stated that a province capable of both granting and withdrawing authority is necessary.
He made the statement during a conversation with Dr Hariprasad Lamsal, chief secretary of the office of Chief Minister and Council of Ministers of Bagmati Province, who met Mayor Shah on Sunday.
Mayor Shah said, "We need a provincial government that can take authority from the federal government and grant authority to strengthen local governments. Currently, this situation is not felt." He questioned, "If local government issues have to be addressed by the federal government, why is there a need for provincial governments? Even when squatters' issues arise, the federal government remains active. The federal government also shows concern about river system improvement and restoration. When the provincial government remains invisible in such matters, what is its existence needed for? The provincial government should play a parental role in the work of local governments, but that has not happened."
Discussing the role of the provincial government, Mayor Shah said, "The provincial government should act as a guardian to empower local governments, but instead, the federal capital's urban area remains idle, focusing on filing cases related to the activation of the Public Transport Authority."
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Regarding the provincial government's entertainment tax rates, Mayor Shah noted that the rates set for the current fiscal year have led to a decrease in revenue for the metropolitan city. He urged the government to amend the Economic Act during the winter session and continue the tax rates from the previous fiscal year.
Deputy Mayor Sunita Dangol stated during the discussion, "Fragmented plans operated by the provincial government will never lead to successful infrastructure development. This is not the kind of development framework we want." She continued, "There is a plan to build a badminton court. The current development method involves leveling the land in one year, building a wall the next year, and constructing the court in the third year. If we are to implement the plan, we must arrange the budget to complete it all at once. If this is not possible, the plan cannot be implemented."
During the discussion, Chief Secretary Dr. Lamsal stated that the lack of political and administrative communication between the provincial and local governments has led to the current situation. He added, "I will manage administrative issues and work to create an environment for political dialogue."
The discussion addressed topics such as revenue collection, revenue distribution, employee management, the constitutional provision for the municipal police, and the implementation of the law issued by the metropolitan city, which the Local Services (Formation and Operation) Act did not include.
For the current fiscal year, the provincial government amended the Economic Act and reduced the revenue rates local governments receive from the entertainment sector. This reduction decreased revenue from casinos, skywalks, and fairs. Last year, the metropolitan city earned Rs 23,86,000 in annual revenue from the 5 percent fee collected from the Aakasheshi Bridge. However, this year, with the law setting an annual fee of Rs 50,000, the revenue has decreased by Rs 23,30,000.
Previously, the metropolitan city levied a 5 percent tax on entry fees for fairs, concerts, and magic circuses. Now, the city has set a daily fee of Rs 15,000. During the meeting, officials stated, "International practices show that taxes can go up to 38 percent for the screening of foreign films. Regarding casinos, the Office of the Auditor General listed the amount remaining to be collected from casinos by Kathmandu Metropolitan City as arrears. Instead of helping recover this amount, the city reduced the rates, resulting in a significant drop in revenue." With the decrease in revenue across all entertainment sectors, the city could not allocate a budget for promoting and encouraging films, arts, and creativity.
The metropolitan city stated that it can charge a lower fee for screening domestic films and a higher fee for screening foreign films.
