Kathmandu: The Kathmandu Metropolitan City (KMC) has been receiving tax levied on rental charges from only 22 per cent of the total number of house owners in the capital city.
According to KMC Revenue Division Chief, Druba Kafle, due to the lack of substantive legal provision 78 per cent of the property owners in Kathmandu have been evading rental tax.
The tenants and the property owners have been in verbal agreement in connection to the rent charged on the tenants. “Such works are not done on the basis of any legal status,” Kafle added.
Kafle said the tax collected from the property owners have increased to some level as those leaving for foreign countries must pay the tax and tariff levied on property, electricity, water and other facilities.
The property owners must submit two percent of the total amount of rent charged on tenants to the KMC, which has been raising an annual Rs 120 million under the topic.
The KMC has no legal footing on taking action on house owners due to the lack of legal provision on tax levied on rental charges.