Kathmandu, September 23
The dispute between Kathmandu Metropolitan City and hotel owners regarding property tax has been solved for now. This comes after KMC decided to give heavy discounts on property tax imposed on hotels.
Hotel Association Nepal’s General Secretary Sajan Shakya has said that the two sides have come to an agreement that the tax paid by hotels in the last fiscal year 2018/19 will be used for tourism promotion. He further adds that hotels will also get a 65 per cent tax waiver for fiscal year 2019/20.
According to the Local Government Operation Act 2074, local governments can collect property tax from hotels. But, HAN had been protesting citing the Revenue Act 2075 had a provision for excessive property tax.
“We have also been asking for an additional 10 per cent waiver on property tax until October,” Shakya adds. The KMC has said that it will open a joint trust and keep around 65 per cent of the amount paid by hotels.
The funds will then be used by both the KMC and HAN for tourism promotion. A guideline has already been prepared for this. Both parties believe that this will help Visit Nepal Year 2020.
