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