KMC identifies 200,000 taxpayers not regularly paying taxes

KATHMANDU: An alarming revelation has surfaced indicating that approximately 200,000 taxpayers are failing to regularly fulfill their tax obligations at the Kathmandu Metropolitan City (KMC).

According to reports from the KMC Revenue Department, out of the 312,000 taxpayers registered with the KMC, a staggering 200,000 individuals have been identified as non-compliant in meeting their tax responsibilities on a consistent basis.

In response to this concerning trend, the metropolis has announced plans to intensify ward-level monitoring efforts aimed at addressing the issue of taxpayers neglecting their obligations over an extended period, in accordance with established regulations.

Chief of the KMC Revenue Department, Dhruv Kafle, disclosed that among the non-compliant taxpayers, approximately 100,000 are neglecting to pay rent-related taxes, while the remaining portion comprises individuals reluctant to fulfill obligations related to business tax, entertainment tax, and advertisement tax.

To combat this issue and enhance tax compliance, the KMC is gearing up to bring all unregistered taxpayers of various categories into the taxation system through regular monitoring starting this month.

Furthermore, it has come to light that outstanding dues totaling Rs 2 billion remain unrecovered from registered taxpayers at the KMC, with these arrears accumulating over a span of 12 years, according to sources within the KMC.

The metropolis had set an ambitious annual revenue target of Rs 10.80 billion for the current fiscal year. However, as of the first eight months of the fiscal year, only Rs 5.80 billion has been successfully collected.

Despite initially showing satisfactory revenue collection status in the first six months of the fiscal year, the KMC experienced a decline in revenue during the last month (mid-January to mid-February 2024) compared to previous periods, indicating a need for enhanced measures to address tax non-compliance and bolster revenue generation efforts.