The Bharatpur Metropolitan City has announced an increment in the tax rate and tax expansion with a goal to upscale internal income to Rs one billion in the upcoming fiscal year.
This announcement comes amidst growing criticism from all sides against the proposed increase in the tax rate.
Mayor Renu Dahal announced in a news conference here Sunday that the tax rate and its scope have been increased to make them timely, practical and scientific.
“Only some tax rate and range has been increased in tune with the times based on the provisions of the Local Government Operation Act, 2074, and also based on the business investment, capital and volume of transactions,” she said.
Dahal said that the decision to increase the internal income of the metropolis to Rs one billion has been taken as per the mandatory requirement that a city should have internal income of Rs 1 billion to have the status of a metropolitan city.
The Bharatpur Metropolitan City has the target of collecting revenue worth Rs 700 million, including Rs 100 million from business tax, Rs 70 million from internal revenue and Rs 530 million from internal income.
Last year, the metropolis’ internal income was Rs 239.8 million. Tax was imposed on 115 headings last fiscal year and the tax range has been increased to cover 208 headings. The total budget of the Bharatpur Metropolitan City in this fiscal year is Rs 3.25 billion.
Deputy Mayor Parbati Shah said that the Revenue Advisory Committee formed by the metropolis could, however, propose some changes on some topics after consultations.
Chief Administrative Officer Prem Raj Joshi said the problems to do with the classification of the rate of tax would be gradually addressed.
President of Chitwan Chamber of Commerce and Industry Sahan Lal Pradhan said that the basis of classification of tax was not clear, it was erroneous and unscientific. He urged the metropolis to correct it.
Immediate past president of the Chitwan Chamber of Commerce Rajan Gautam and Chamber vice-president Raju Poudel spoke of the need of expanding the tax range in order to make the metropolis a developed and prosperous city.