•      Sat Apr 13 2024
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Kathmandu metropolis budget, new taxes for businesses



Kathmandu, June 25: Kathmandu Metropolitan City presented the Economic Bill, 2080BS in the Municipal Assembly on Sunday to implement the financial proposal. The Economic Bill has set the tax rates to be charged within the Metropolitan Municipality for the next financial year.

The metropolis has determined the commercial tax based on the nature of various businesses and the investment situation. According to the economic bill, those registered in the soft drinks industry (Coca-Cola, Pepsi-Cola, Fruity, etc.) in the manufacturing business and industry will have to pay a tax of Rs 50,000. An annual fee of Rs 2,000 has been set for the renewal of soft drinks such as soda produced by domestic industry, Rs 50,000 for distillery industry, Rs 5,000 for various exportable goods and businesses and Rs 10,000 for importable goods and businesses.

A tax of Rs 15,000 has been imposed on film production companies and Rs 5,000 for distribution companies. A tax of Rs 5,000 has been fixed for the mineral water industry, Rs 10,000 for the large ice cream industry (above three kilowatts) and Rs 2,000 for domestic industries (up to three kilowatts).

A tax of Rs 10,000 has been imposed on branded biscuits, bread rolls, cake industries and Rs 2,000 on such domestic industries. Dairy industry will have to pay Rs 10,000, Kutani-Pisani mills will have to pay Rs 5,000, branded shoes and slippers industry will have to pay Rs 12,000, bag, belt, purse etc. manufacturing industry will have to pay Rs 5,000.

A tax of Rs 10,000 has been fixed for food industries (above five kilowatts) and Rs 5,000 for such small industries. Carpet, garment, pashmina and plastic industries will have to pay Rs 10,000 tax. According to the capacity of copy, book and printing industry, Rs 2,000 to 12,000 tax, Rs 50,000 for underground water processing industry, Rs 7,000 for bottled and jar water industry has been fixed.

Similarly, bed, cushion making industry will be taxed Rs 5,000 and herbal industry Rs 2,000. The industrial business that constructs and operates road bridges, ropeways, railways, tunnels, flybridges and industrial, commercial and housing complexes etc. will be taxed at Rs 25,000. Rs. 2,000 for grocery stores, Rs 5,000 for wholesale grocery stores, Rs 10,000 for wholesale food sellers, Rs 3,000 for food retail sales, Rs 2,000 for beekeeping business and Rs 3,000 for selling chicken chicks.

Similarly, a tax of Rs 1,000 has been set for retail shops selling fruits, juices and vegetables, Rs 2,000 for fruit and vegetable wholesale shops, and Rs 2,000 for fruit and plant sellers (nurseries). Retailers of fish/meat, eggs will have to pay Rs 2,500 and wholesalers will have to pay Rs 6,000. A tax of Rs 5,000 has been imposed on the sale of processed meat products.

A tax of Rs 2,000 has been set for businesses engaged in vegetable farming, animal husbandry and other agricultural activities, Rs 7,000 for wholesale shops selling pet shops, and Rs 3,000 for retail shops. Similarly, a tax of Rs 5,000 has been set for dog breeding centers, Rs 2,000 for modern animal slaughterhouses and shops selling vegetable seeds.

In hotel, tourism and entertainment business, tax will be Rs.1 lakh for five-star hotels, Rs.80,000 for four-star hotels, Rs.60,000 for three-star hotels, Rs.40,000 for two-star hotels and Rs.20,000 for one-star hotels. A tax of Rs 10,000 has been levied for film exhibition houses, ordinary hotels, lodges, guesthouses, home-stays with a capacity of more than 50 people, restaurants and bars (except dance), travel and trekking agencies.

A tax of Rs 10,000 has also been fixed for massage parlour, spa, jacuzzi, sauna, swimming pool. A tax of Rs 3,000 will be levied for contact offices of tourist sports (golf courses, rafting, safari, horse riding, skiing, gliding, water rafting, pony trekking, paragliding, polo, bungee jump, cable car, resort, hotel etc.).

A tax of Rs 50,000 has been imposed on foreign airline service providers and Rs 25,000 on domestic airline services. A tax of Rs 25,000 will be levied on aircraft rental companies, discos, night clubs, foreign employment liaison businesses, etc.

Similarly, a tax of Rs 3 lakh has been levied on casinos and Rs 25,000 on mini casinos. A tax of Rs 5,000 has been set for trekking goods shops, businesses providing entertainment services, tanka shops, dance training centers, businesses providing music related services, and tattoo houses. Hostels with up to 50 people will have to pay Rs 3,000 and hostels with more than 50 people will have to pay Rs 5,000. Make-up studios will have to pay Rs 10,000 for make-up studios, Rs 10,000 for fun parks with an area of up to 10 ropani, Rs 20,000 for fun parks with an area of up to 10 ropani and Rs 30,000 for fun parks with an area of more than 10 ropani.

In the communication sector, a tax of Rs 5,000 has been set for television broadcasting companies, Rs 1,000 for FM stations, Rs 2,000 for online service businesses, Rs 500 for online news portals, Rs 2,000 for national newspapers, Rs 1,000 for local newspapers and Rs 2,000 for cyber cafes.