KATHMANDU, May 3: Following the discovery that RB Complex (Ranamukteshwar Business Complex) and People's Plaza at New Road have not fulfilled their tax obligations to the Kathmandu Metropolitan City (KMC), the KMC has issued an ultimatum. The operators of both infrastructures, located in Ward-22, have been instructed to provide tax-related details within 7 days and settle their outstanding taxes within 35 days.
RB Complex has failed to pay property tax and rental tax, while People's Plaza has neglected taxes for three consecutive fiscal years, including the rental tax.
The discrepancy came to light during an inspection by the revenue site supervision and monitoring team led by Chief Administrative Officer Pradeep Pariyar of KMC on Thursday.
The KMC team has dispatched a letter to the complex owners, demanding the submission of their tax details within 7 days and settlement of dues at the ward office within 35 days.
As part of the 'Monitoring Team Operational Program 2080 BS' of the Metropolitan Revenue Department, three types of revenue monitoring teams have been established. These include a ward-level team comprising people's representatives, employees, and revenue department staff. Additionally, there is a revenue department-level team at the center, overseen by the Chief Administrative Officer, to supervise the activities of both these teams.
During the inspection, Chief Administrative Officer Pariyar asked the complex owners to clear the dues, according to the legal provisions where one is required to pay 10 percent of the income generated from rents to the local government. "We are conducting revenue monitoring to thank taxpayers who fulfill their obligations and to remind those who do not," he said.
During monitoring, the inspection team sought details on restored contracts and taxable properties. According to the metropolis, RB Complex accommodates around 315 businessmen, while People's Plaza has about 160 businessmen, all of whom are liable to pay business taxes.
"There are complaints from businessmen alleging double-dealing in rent tax payments,” said Dhruba Kumar Kafle, head of the revenue department at KMC. He also added, “There is no wrongdoing as such,” refuting the claims of businessmen.
The KMC has introduced ‘rent management guidelines' to oversee the rent tax process and to address discrepancies.
According to the guidelines, business complex operators must enter into agreements with businessmen and provide copies, with one copy submitted to the ward office. Kafle affirmed that compliance with this procedure was observed during the inspection.