Contribution of House and Land Tax to Total Municipal Revenue of Kathmandu Metropolitan City

Abstract

Nepal is one of the least developed Countries. It is suffering from economic crisis. To increase the government revenue Nepalese government is trying to extract money or valuable contribution from people through taxation. Urban house and land (property) tax is the important resource of government revenue.

In Nepal, property tax was introduced by finance act, 1959 A.D. It was implemented under property tax Act in 1960 A.D. Due to ineffectiveness in collecting revenue. It was replaced by urban house and property tax later. Urban house and land tax was introduced in 1962 A.D. for the purpose of collecting revenue from urban house and land property. The interim government of 2047 B.S. again introduced property tax in 1990 A.D. by the finance act in beginning and by property tax act 1990. After the introduction of local self-government act in 1999, property tax is given to local bodies.

House and Land tax has been accepted as an important source of government revenue of Nepal. The growing need of resource for the development plans, to operate daily administration, to maintain peace and security and to launch other public welfare activitiescan be met through effective large volume of house and land tax. Through there are number of problems, the contribution of house and land tax is likely to be significant in the future

This study will suggested measures to improve the revenue collection system in Kathmandu Metropolitan City. It also helps tax administration to attract the tax payer. It will creates proud and ego for paying property tax towards the property holders (taxpayers), which helps tax administrator to collect revenue easily.