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KMC to halt transaction of tax defaulters

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KATHMANDU, Feb. 26: Kathmandu Metropolitan City (KMC) has warned of halting transaction of those who refuse to pay house and business taxes.



KMC issued this warning after its revenue collection fell sharply as a result of tendency of being apathetic to pay tax among many metropolitan dwellers.[break]



KMC Tax Officer Ram Prasad Poudel said the habit of showing negligence to pay tax is increasing because KMC hasn´t become tougher. "Thus, we have to take this step to bring them under tax net," he said.



Even though the Clause 165 of Local Self-Governance Act 2055 grants the right to municipalities to halt house, land and business transactions, KMC hasn´t swung into action in accordance with the law as of now.



Door-to-door campaign launched by KMC from Feb. 13 is its effort to bring all under tax net. Under the drive, KMC´s tax officer writes tax defaulters, urging them to pay tax within 15 days. If its first letter is ignored, KMC´s Tax Division Chief writes second letter urging them to pay tax within 10 days.



In case the second letter goes unheard and people don´t pay tax within the deadline, KMC´s Chief Executive Officer sends letter to them with the deadline of three days. "If the last warning is brushed off, we will halt land and house as well as business transactions," said Poudel.



KMC has targeted to collect Rs. 40 million through land, house and business taxes.



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