June 26: The Kathmandu Metropolitan City (KMC) on Sunday presented the Finance Bill, 2080 in the Municipal Assembly to implement its financial proposal. The Finance Bill has proposed changing the tax rates within the jurisdiction of the metropolis in the next fiscal year. The metropolis has determined the commercial taxes by taking into consideration the nature of various businesses and the investment situation.

Beverage Manufacturers and Suppliers

According to the Finance Bill of the Kathmandu Metropolitan City, those registered in the soft drinks industry (Coca-Cola, Pepsi-Cola, Frooti, etc.) in the manufacturing business and industry will have to pay a tax of Rs 50,000 to the KMC. An annual fee of Rs 2,000 has been set for the renewal of license of the domestic industries that produce soda and soft drinks, Rs 50,000 for distillery industry, Rs 5,000 for various businesses involved in or industries that produce exportable goods and Rs 10,000 for businesses and industries involved in import of goods.

A tax of Rs 5,000 has been fixed for the mineral water industry, Rs 10,000 for the ice cream industry (above three kilowatts) and Rs 2,000 for such domestic industries (up to three kilowatts).

Similarly, a tax of Rs 10,000 has been imposed on branded biscuits, bread rolls, cake industries and Rs 2,000 on domestic industries that produce such products. The dairy industry will have to pay Rs 10,000, while the mills will have to pay Rs 5,000, branded shoes and slippers industry will have to pay Rs 12,000, industries that manufacture bags, belts, purses etc will have to pay Rs 5,000 each.

Similarly, grocery and retail shop will have to pay Rs 2000 each for the renewal of their license while the renewal tax for wholesale grocery shop has been fixed at Rs 5000. Similarly, wholesale food sellers will have to pay Rs 10000 as taxes for license renewal while retailers will have to pay Rs 3000.

Small Scale Industries

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 as annual tax. Meanwhile, an annual tax ranging from Rs 2000 to Rs 12000 has been fixed for copy, book and printing industry according to their capacity.

Likewise, annual tax of Rs 50,000 has been fixed for underground water processing industry and Rs 7,000 for bottled and jar water industry.

Construction and Business

The industrial enterprises that constructs and operates road bridges, ropeways, railways, tunnels, flyovers and industrial, commercial and residential complexes etc will be taxed Rs 25,000 each. Hostels with up to 50 people will have to pay Rs 3,000 as taxes and hostels with more than 50 people will have to pay Rs 5,000. Makeup studio will have to pay Rs 3000 as annual tax. Similarly, cushion-making industry will be taxed Rs 5000 and herbal industry Rs 2000.

Agriculture

The KMC has fixed annual tax of Rs 2000 for the beekeeping industry and Rs 3,000 for selling 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 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 for those who sell processed meat products.

Meanwhile, 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 products (feed/food for pets) 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.

Tourism and Recreation

In the hotel and tourism sector and entertainment business, the KMC has fixed a tax of Rs 100,000 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 fixed for film halls, ordinary hotels, lodges, guesthouses, homestays with a capacity of more than 50 people, restaurants and bars (except dance bars), as well as travel and trekking agencies.

A tax of Rs 10,000 has also been fixed for massage parlours, spa, jacuzzi, sauna, swimming pool among others.

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.).

Similarly, a tax of Rs 15,000 has been fixed for film production companies and Rs 5,000 on distribution companies.

Similarly, a tax of Rs 300,000 has been set for casinos and Rs 25,000 for mini casinos.

A tax of Rs 5,000 has been set for trekking goods shops, businesses providing entertainment services, Thanka shops, dance training centers, businesses providing music related services, and tattoo houses. A fun park with an area of up to five ropanis will have to pay Rs 10,000, a fun park with an area of up to ten ropanies will have to pay Rs 20,000 and a fun park with an area of more than ten ropanis will have to pay Rs 30,000.

Communication

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 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.

A tax of Rs 50,000 has been fixed for foreign airline service providers and Rs 25,000 for domestic airline services.

Similarly, a tax of Rs 25,000 will be levied on aircraft rental companies, discos, night clubs, foreign employment liaison businesses, etc.