The Kathmandu Metropolitan City (KMC) has decided to spare all businesses from penalty on tax dues for the fiscal year 2019-2020.
The decision was made as per the Finance Bill (2020-2021) tabled by KMC Mayor Bidhya Sundar Shakya at the seventh municipal assembly on June 24 to help business enterprises of Kathmandu district who are severely affected by the COVID-19 pandemic and the lockdown.
If business owners submit property tax by mid-January, they will be provided with 10 per cent discount on applicable tax.
In yet another decision, buildings to be constructed for vehicle parking will get 100 per cent property tax exemption for the next five years from the date of operation.
KMC has also proposed to grant 75 per cent exemption to hotels and resorts on property tax for the new fiscal 2020-2021 on the condition that they settle the applicable tax of fiscal 2019-2020.
Similarly, house owners offering at least one-month rent waiver to tenants, will get 10 per cent exemption on annual rental tax for the fiscal 2020-2021.
As per KMC, traders engaged in hotel, tourism and entertainment sectors inside the metropolis will be entitled to 50 per cent exemption on business tax.
Meanwhile, the Pokhara Metropolitan City has announced to grant subsidy to taxpayers as the lockdown has invariably affected economic and business transaction.
In its annual budget for the fiscal year 2020-2021, the Pokhara Metropolis announced waiving three-month house rent of commercial shutters and buildings.
Deputy mayor of Pokhara, Manju Devi Gurung, informed that an arrangement has been made to waive house rent tax of lockdown period if house owners waive house rent for the same time period.