Pokhara Metropolis increases tourism industry taxes drastically

6th Aug, 2018 | Tourism Mail Crew

POKHARA, Aug 06: Pokhara Metropolitan City has increased the taxes to the tourism industry after the state government of Gandaki decided on the taxes that can be levied by the central and local government.

The metropolis widened the applicable regions of taxes while also increasing the taxes related to the tourism businesses from 10 to 15%. This was made possible after the state government gave the local administration rights to levy taxes in order to bring in internal revenue.

The state government has set the aim of raising Rs. 1 billion 699.5 million in taxes through a number of fields including house and land registration, auto vehicles, advertisements, entertainment, natural resources fees, and tourism, increasing the scope of tax applicable sectors accordingly. Pokhara Municipality followed suit by increasing taxes in the tourism sector to a high extent. The city has increased the taxes of hotels, restaurants and lodges to a great extent.

Pokhara Metropolis has increased the taxes of starred hotels upto 25%, informed the Chief of Pokhara Metropolis Revenue Department, Chabilal Sharma. According to the Economic Act 2075 passed by the City Assembly, starred hotels will now have to pay the city a yearly tax of Rs. 4,668, while previously the tax waas Rs. 3,750 per year.

Two-starred hotels will have to pay a yearly tax of Rs. 6,250, while three-starred hotels will have to pay a yearly tax of Rs. 7,813. Similarly, four-starred hotels will be charged Rs. 9,375 yearly and five-starred hotels will be charged Rs. 10,938.

Non-starred hotels have also had their yearly taxes increased, which have been defined according to the number of rooms each hotel has available. Hotels with up to 5 rooms will have to pay a tax of Rs. 484 which represents a 10% increase over the last fiscal year. Hotels with up to 10 rooms will be charged a yearly tax of Rs. 787, and those with up to 20 rooms will now have to pay Rs. 1,452. Hotels with more than 20 rooms will have to pay Rs. 1,936 yearly.