The Beni municipality in Myagdi district has initiated a process to gather information about landlords who lease their houses and land. This step is aimed at bringing these landlords within the taxation framework.
The municipality has requested landlords to provide details of their rented properties within the municipal area. They have issued a 35-day notice, expiring on September 7, for landlords to submit the necessary information at the respective ward offices.
To ensure compliance with taxation, the municipality has classified landlords into three categories. Landlords who fail to submit the required details within the given deadline will be subject to late fines.
Starting from the current fiscal year, house rent tax has become obligatory. After finding that only a few landlords were paying house rent tax, the municipal assembly introduced this amendment.
The tax rates for landlords vary depending on the purpose of the property lease. Those renting their properties for official purposes must pay a 10% tax, while those leasing for business purposes must pay a 4% tax, and those providing residential leases must pay a 2% tax.
Previously, a flat 10% tax rate was applied to all purposes. As a result of this taxation effort, the municipality has collected a revenue of Rs 3.035 million under the house rent category.
With inputs from RSS