Last week KMC had corresponded with over one hundred private business associations asking them to identify and register their taxable components. “We assume this to be more effective mode of communication as these organisations represents thousands of small businesses,” said Dhurba Kafle, an official at the Revenue Department at the KMC. Currently, KMC has communicated with entities which represent various business sectors such as malls, super markets, drinking water suppliers, dairy products, furniture industries, agro products, and petrol pumps, among others.

The metropolis has also announced a ten percent subsidy in the house and land tax. Furthermore, the KMC has a scheme to levy minimal tax registration fees to those who, on mutual cooperation, bring 85 or more entities together to disclose their taxable components. “ These schemes are formulated to encourage the entities,” said Kafle.

In May, KMC had successfully brought various hotels including the five stars under its tax net.  The KMC had also taken extreme measures such as cutting off the waste collection service for those hotels which had not registered their taxable components. The waste collection service was resumed only after the hotels agreed to disclose their taxable components. Similarly, the metropolis had also sealed off of Thapathali based trade tower after the latter refused to unveil its taxable components.

The housing company later paid off Rs 3.5 million, and committed to clear the remaining amount by the end of this fiscal year. The KMC has also come up with a provision allowing tax payers to pay in instalments for amount exceeding Rs 1 million.

Section 165(2) of Local Self Governance Act 1999 authorises KMC to stop basic services to recover taxes from the defaulters. The Act also enables the KMC to collect taxes relating to house and land, business, rent, advertisement, and entertainment. It also has the authority to freeze and auction off the properties of the defaulters.