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A recent assessment has revealed that over 200,000 taxpayers within the Kathmandu Metropolitan City (KMC) jurisdiction are not consistently meeting their tax obligations.
Out of the total 312,000 registered taxpayers, approximately 200,000 have been identified as irregular contributors.
The KMC Revenue Department disclosed plans to intensify monitoring at the ward level to address the issue of non-compliant taxpayers who have avoided registration or payment for an extended period.
Of the non-compliant taxpayers, around 100,000 individuals are neglecting to pay rent-related taxes, while an equivalent number are failing to fulfill obligations related to business tax, entertainment tax, and advertisement tax, as stated by Dhruv Kafle, Chief of the KMC Revenue Department.
Efforts are underway to streamline the registration process and enhance monitoring to ensure tax compliance across all categories of taxpayers, starting this month.
Kafle highlighted a significant outstanding amount of Rs 2 billion in arrears owed by registered taxpayers to the KMC, accumulated over the past 12 years.
Despite setting an annual revenue target of Rs 10.80 billion for the current fiscal year, the KMC has only managed to collect Rs 5.80 billion in the first eight months. While revenue collection remained satisfactory in the initial six months, a decline was observed in the last month (mid-January to mid-February, 2024) compared to previous periods.