Pokhara’s Business Community Urges Broader Tax Base Instead of Higher Rates

The business community in Pokhara has called on the Pokhara Metropolitan City to expand the tax base rather than increasing tax rates. The recommendation was made during an interaction program jointly organized by the Pokhara Chamber of Commerce and Industry and the metropolitan city, focusing on the revenue policy for the upcoming fiscal year.

Private sector representatives highlighted the growing number of informal businesses in the city, stating that these unregistered entities are negatively affecting formally registered businesses that are fulfilling their tax obligations.

Gokarna Karki, Chairperson of the Pokhara Chamber of Commerce and Industry, emphasized that unregistered businesses are undermining fair competition, often selling goods that enter the market through unauthorized channels, bypassing customs duties. "There is a risk of unauthorized goods being sold, harming businesses that import legally and pay proper duties," he noted.

He also stressed the need to avoid double taxation, arguing that taxes of the same nature should not be imposed more than once across different jurisdictions. Additionally, Karki raised the issue of house tax, a long-standing concern in the city. He demanded that the responsibility of paying house tax should lie with property owners, not tenants or businesses operating from rented spaces.

Binod Shrestha, President of the Lekhnath Chamber of Commerce and Industry, also underscored the importance of drafting the revenue policy in consultation with the private sector. He warned that lack of coordination could lead to policies that burden rather than support local enterprises.

Other business leaders, including Binod Sharma (President, Confederation of Nepali Industries Gandaki), Umaraj Bastola (President, Pokhara Chamber of Commerce), Januka Parajuli (General Secretary, Lekhnath Chamber), and Uttam Man Buddhacharya (Senior Vice-President, Pokhara Chamber), echoed the need for a more business-friendly revenue approach from the state.

In response, Manju Devi Gurung, Deputy Mayor of Pokhara Metropolitan City and Coordinator of the Revenue Advisory Committee, acknowledged the concerns raised by the private sector. She assured that the inputs received would be taken into account during the policy-making process.