Kathmandu Metropolitan City has announced various tax concessions in the coming fiscal year keeping in view the Covid-19 epidemic. In the Metropolitan Finance Bill, 2078, made by the Metropolitan Chief Vidya Sundar Shakya, considering the effect of Covid-19, it has been proposed to waive the fines levied on all types of tax arrears from the fiscal year 2076/077 which are yet to be collected from the taxpayers.
Deputy Chief Hari Prabha Khadgi has presented the Kathmandu Metropolitan Appropriation Bill, 2078 BS in the Municipal Council. The bill presented by Deputy Chief Khadgi also mentions the right to spend from the reserve fund and estimated expenditure for the services and works of the Fiscal Year 2078/79.
The bill also states that the revenue collection software will be updated and implemented to make the revenue system collected from the corporation systematic, effective, and transparent.
"Considering the impact of Covid-19 on the hotel and tourism sector, there will be an additional 80 percent exemption in property tax for the fiscal year 2078/79," the bill states. "All taxpayers will get a 10 percent discount if they pay property tax by end of Poush 2078."
Considering the impact of Covid-19, the amount of 10 percent of the annual restoration tax paid by the homeowner or Rs. 25,000 whichever is less will be exempted. In order to get the restoration tax exemption under this provision, the restoration agreement between the owner of the house concerned and the natural or legal person taking the restoration must be submitted, 'the bill said.
Businesses such as hotels, restaurants, and shops in the Kathmandu metropolitan area (places where there are more crowds and lack of public toilets) have agreed to provide free services to the general public in the toilets built for their purpose and if they cooperate with the metropolis, the business tax on such businesses will be reduced by fifty percent.
The corporation has waived all the fines imposed on tax evaders from the fiscal year 2076/77. Similarly, up to 90 percent exemption has been provided in property tax. Similarly, the corporation has proposed a rebate of 10 percent or 25,000 whichever is less.
Similarly, the bill has also announced that no business tax will be levied on beauty parlor and salon businesses. Businesses such as hotels and restaurants have also announced a 50 percent rebate on business tax if free services are provided to the general public in toilets built for this purpose. The financial bill also states that the metropolis will provide eight types of services free of cost.
