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Large Institutions Avoiding Advertising Tax

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Large Institutions Avoiding Advertising Tax
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March  26 : The Kathmandu Metropolitan City (KMC) has made a remarkable progress in collecting the advertising tax from different institutions in the current fiscal year.

According to Abdul  Majeed Khan, Section Officer at the KMC Revenue Department, KMC has been successful in collecting around Rs forty million in advertising revenue until March in the current fiscal year.

In the last FY 2015-16, KMC had collected a total revenue of rupees 41.8 million, whereas this year, the revenue collection has reached Rs 40 million till date, which is four months before the end of the Nepali fiscal year. In the previous year, the revenue collected  till the month of March was only Rs 900,000.

The organisations have to pay the tax to the KMC for any kind of promotional materials including hoarding boards, neon board (electric), digital display advertisements pasted on rickshaws and other means of transportation and online advertisements.

Section Officer Khan says that a strict campaign has been launched so that all the institutions will be obliged to pay the revenue. He said that KMC has been strictly running the campaign and also has removed the hoarding boards and has been blacklisting the companies which have not paid their revenue on time for the last few days.

"Various small and large financial institutions including banks, remittance companies, cement factories, cinema halls, 
mobile phone companies and internet service provider companies have not been submitting their revenue on time," informed Khan. 

Besides this, many other institutions have also not showed their concern on paying the revenue.

According to KMC, there are many companies which have been pasting pamphlets, hoarding boards, posters in a manner that causes pollution, but they are not showing concern to pay the revenue. KMC says that such companies will be taken strict action.

According to KMC, the companies which will not pay their revenues till the end of this FY will be blacklisted.

Similarly, KMC will be charging a fine of Rs 5,000 to Rs 100,000 from the companies which have placed their hoarding boards and banners  illegally without taking the permission from the authorised institutions.

 

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