KATHMANDU, Nov 24: Revenue Advisory Committee of Kathmandu Metropolitan City(KMC) has concluded that strengthening citizen engagement and improving intergovernmental coordination are essential to achieving this year’s revenue targets.
The conclusion came during a meeting chaired by Committee Coordinator and Deputy Mayor Sunita Dangol, which reviewed current revenue performance against last year’s figures.
Deputy Mayor Dangol emphasized that revenue collection teams must include individuals familiar with local contexts, social structures, and cultural practices. She noted that female community health volunteers could be mobilized with incentives during their off-hours. “They already have deep roots in the community, which ensures accurate reporting and measurable outcomes,” she said.
KMC collects Rs 2.92 billion in revenue in four months
Chief Administrative Officer Saroj Guragain stressed the need for optimal use of existing human resources to reach revenue goals.
Providing updates on the current fiscal year, Committee Member-Secretary and Revenue Department Chief Deepak Adhikari reported that the metropolis has achieved 22 percent of its overall revenue target and 20 percent of its internal revenue target. Of the Rs 15.11 billion set for this fiscal year, Rs 3.37 billion had been collected as of October 24. During the same period last year, revenue collection stood at Rs 3.26 billion, reflecting an increase of Rs 1.11 billion this year.
In internal revenue, Kathmandu has collected Rs 2.09 billion of the Rs 10.12 billion target. The city has also set a goal of generating Rs 2.47 billion in grants this fiscal year.
The meeting discussed ongoing challenges in revenue collection, measures adopted to address them and further steps required. Participants also noted the financial strain on businesses caused by damages during the recent Gen Z movement and reviewed efforts to mitigate the economic impact.
Adhikari reported that the department has recovered Rs 33.02 million in arrears from eight individuals and organizations flagged by the Office of the Auditor General in previous years. The city has also issued notices to 21 business associations—including the House Rent Concern Center, Hotel Association Nepal and the Nepal Barbers’ Association—regarding overdue business taxes. Digital advertising boards that had long failed to pay advertisement fees were inspected, and revenue has been collected from boards deemed suitable for display. The department has resolved 18 complaints submitted by the public.
In previous fiscal years, Kathmandu Metropolitan City had mixed results in meeting its revenue targets. In FY 2020/21, it collected Rs 10.64 billion against the Rs 10.76 billion target; in FY 2021/22, it exceeded its Rs 9.08 billion target by collecting Rs 10.60 billion. Similarly, in FY 2022/23 and FY 2023/24, the city collected Rs 10.25 billion and Rs 10.64 billion, respectively, slightly below targets. Last fiscal year, it collected Rs 10.74 billion against a target of Rs 12.90 billion.
KMC currently collects revenue through property tax, house rent tax, vehicle tax, service charges, tourism entry fees, advertisement tax, business tax, land revenue, fines and penalties, entertainment tax and land registration fees.
