Tax beyond people's capacity at local levels: Study Report

KATHMANDU, Oct 25: At a time when the people have been alarmed over the increased taxes on different headings at local levels, a study team formed under a Ministry has upheld people's concern that the local levels imposed tax without assessing their capacity. 

Three member study team coordinated by Secretary at Ministry of Federal Affairs and General Administration, Dinesh Kumar Thapaliya, found that the local levels began raising tax without holding adequate discussion with the people. 

The Ministry had formed the study committee in response to the flurry of complaints about random taxation. The committee had the members- Secretary at National Natural Resources and Fiscal Commission, Baikuntha Aryal, and Revenue Secretary at Finance Ministry, Sishir Dhungana. 

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Chief of the Resource Mobilization Coordination Division, Bishnu Datt Gautam, shared that the tax was determined without considering people's capacity. "It was found that the local levels, being the new practice in country's governance, imposed tax without holding ample discussion," he said, adding, "People's paying capacity was flatly ignored while fixing the tax." 

The pollution tax, tax on petroleum products, one-time vehicle tax, export tax are some of the headings on which the local levels are raising the tax since the beginning of the current fiscal year as per the constitution and local government operation act 2074. 

Earlier, the district development committee used to collect such taxes. 

As per the report, the petroleum product tax and border entry tax of Birgunj Metropolis, and pollution tax of Shuklagandaki municipality in Tanahu were some of the taxes imposed against laws, said Undersecretary Gautam. 

Interestingly, Shuklagandaki municipality had decided to impose Rs 800 thousand pollution tax from Surya Tobacco Company per year. 

Moreover, excessive tax was imposed on property in Biratnagar, Pokhara and Bharatpur, while Annapurna Rural Municipality of Kaski, Madhyapurthimi Municipality of Bhaktapur imposed excessive tax while registering the plot, and Chandragiri Municipality on the sales and buying of goats. 

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