Kathmandu Metropolitan Imposes New Taxation on BFIs

The Kathmandu Metropolitan City (KMC) has introduced additional taxation for banks and financial institutions (BFIs) operating within its jurisdiction.

During the announcement of the financial budget for the fiscal year 2080-81, Deputy Mayor of KMC, Sunita Dangol, revealed the implementation of new taxes specifically targeting BFIs.

Under the newly imposed tax structure, commercial banks' head offices will be required to pay Rs. 1 lakh, while each branch will be liable for Rs. 50,000, and each extension counter will incur a tax of Rs. 20,000.

Development banks will also be subjected to additional taxation, with their head offices owing Rs. 75,000, branch offices paying Rs. 40,000, and each extension counter being charged Rs. 15,000.

Similarly, finance companies will have to pay Rs. 50,000 for their central offices, and Rs. 25,000 for each branch office.

Microfinance companies, on the other hand, will be subject to a tax of Rs. 20,000 for their central offices, while each branch will have to contribute Rs. 3,000 to the Kathmandu Metropolitan City Office.

Earlier, on Friday, the Kathmandu Metropolitan City approved its Policies and Programs and subsequently unveiled its annual budget for the upcoming fiscal year 080-081.

As per the Local Government Operation Act, it is mandatory for local levels to present their annual budgets before the 10th of Ashad each year.

READ ALSO: Kathmandu Metropolitan City Allocates Budget of NPR 25.54 Arba for the Coming Fiscal Year 2080/81

Approval of Annual Policy and Program for Kathmandu Metropolitan City

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