KMC mayor Shah criticizes provincial government for revenue cuts

Kathmandu, January 2 — Kathmandu Metropolitan City Mayor Balendra Shah (Balen) criticized the Bagmati provincial government for irresponsibly amending the financial act, resulting in a reduction in the revenue generated from the entertainment sector for local governments.

He expressed this concern during the introductory meeting of the 2023/24 fiscal year's audit session held on Thursday.

In the meeting held in the Mayor's office, Deputy Mayor Sunita Dangol, Assistant Auditor General Tara Prasad Pandey, Director Kalpana Aryal Pokharel, Audit Officer Ramkrishna Pokharel, Geeta Panthi, Raju Pandey, and various department heads of the metropolitan city were present.

Shah provided examples such as casino fees, skywalks, and fair festivals, stating that previously a 5% fee was charged on the sky bridge, bringing in NPR 23.86 lakhs annually. However, it was recently reduced to NPR 50,000 per year, resulting in a direct revenue loss of NPR 23.3 lakhs.

Similarly, the 5% fee on casino expenses was replaced with a flat NPR 50 per ticket. Fees for entry to festivals, concerts, and magic shows, which were previously taxed at 5%, are now set at NPR 15,000 per day for the municipality.

Shah questioned how such policy corruption could be addressed in the audit process, pointing out that these revenue cuts hinder the city’s budget for promoting arts, culture, and cinema.

Additionally, he highlighted that while local governments have the constitutional right to collect certain taxes, the federal government currently collects these taxes, leading to a further decrease in the city's income.

He emphasized that these policy issues should be highlighted during the audit.