June 17: Hoteliers have urged the Kathmandu Metropolitan City to give exemption on integrated property tax and business tax that is levied on hotels. Hotel Association Nepal (HAN) requested the metropolis to provide 90 percent exemption on property tax and 100 percent exemption on business tax.

HAN argued that tax exemption should be given to protect the hotel business as it is yet to return back to normalcy after being badly affected by the Covid-19 pandemic.

Sajan Shakya, general secretary of HAN, informed that they met the mayor of the metropolis Balendra Shah and requested him to give tax exemption just like last year. The government in the budget for the upcoming fiscal year has also announced  tax exemption for the hotel industry.

Shakya said that the state is also responsible to provide employment and protect the hotel industry which helps in earning foreign currency.

Although Article 12 of the Real Estate Tax Act 2019 exempts property tax for  all structures owned by the hotels, they still have to pay property tax as per  the Unified Property Tax Act 2074.

The metropolis had provided 65 percent exemption in such tax in fiscal year 2075/76, 75 percent in 2076/77, 75 percent in 2077/78 and 80 percent in 2078/79.