Structure And Contribution of Tax To Annual Revenue Of Bhaktapur Municipality

Abstract

Tax is the kinds of money which is the legal duty of every citizen of the country to pay honestly. It is the amount by government to it’s people, institution or the company. Tax is the main and greatest source to generate revenue to fulfill expenditure bore by government for it’s development. The ultimate goal of the under developed countries like Nepal is to achieve the economic development and ensure the rapid rate of economic growth. It needs huge amount of investment in economic overhead and other economic activities for which taxation is a primary source of revenue of the government. For the raising fund for national needs, only one reliable source is different kinds of taxes imposed to the local people, different types of business and organization. The research attempts to identify the “structure & contribution of tax to annual revenue of Bhaktapur municipality using ten years data. Data were taken sources from account and tax section of Bhaktapur municipality. Descriptive method was used to analyze the trend and contribution of house and land tax of Bhaktapur municipality. Nepal is one of the lowest taxed countries in the world. The revenue administration in Nepal is weak because lack of the proper tax policies, lack of trained staff, lack of proper accounting and auditing system in public and business organization.So, the government of Nepal shows the way to improve social and economic problems by regulating and controlling, all the persons and business that earn incomes and profits by different kinds of taxes. The contribution of house and land tax (property tax) of Bhaktapur municipality is very low comparison to other types of local tax. Most of Nepalese people are not familiar with property tax due to lack of tax education,property holders deprived from the right of property tax. If they are informed effectively about the property tax we can expect the increase in the volume as well as paying property tax in timely.