KMC to levy tax on advertisements affixed to motorcycles, t-shirts and bags

Published On: June 26, 2023 06:00 PM NPT By: Republica | @RepublicaNepal

KATHMANDU, June 26: Kathmandu Metropolitan City (KMC) has decided to levy a tax on advertisements affixed to motorcycles, as well as stickers on t-shirts and bags.

KMC has enacted the Finance Bill, 2080 BS to implement the financial proposal presented in the executive meeting on Sunday.

According to the bill, individuals, organizations, companies, or firms will be allowed to place advertisement boards of up to 30 square feet as signboards to identify or introduce their shop business and promote the sale of their goods or services. The tax rate has also been fixed for such advertisements.

For signboards up to 15 square feet, a tax of Rs 1,000 must be paid. Only one such signboard can be placed per shop. An advertisement tax of Rs 1,000 per square foot per year has been fixed for advertisements made from flex boards. Similarly, digital boards, glow sign boards, stickers, neon signs, and similar advertising materials will also be imposed advertising tax of Rs 1,000 per square foot per year.

For temporary advertisements on vehicles, such as those placed on the right and left lanes with a maximum size of 20 square feet, an advertising tax of Rs 100 per day has been set. Additionally, a tax of Rs 300 per square foot per year has been fixed for advertising materials permanently written or printed on vehicles.

In the case of advertisements on sports grounds and similar events, the concerned organizers are required to pay a tax of Rs 10,000 for the first day and Rs 5,000 for each subsequent day.

Advertisements on balloons, jackets, bicycles, motorcycles, dummies, segways, and "human billboards" will be taxed at Rs 500 per head per day. Permission will be granted for a maximum of seven days at a time for such advertisements. There will also be a tax of Rs 100 per bag per year for advertisements placed on bags.

For advertisements placed inside commercial buildings such as malls and movie theaters, where they are not visible from public places, an advertising tax of Rs 500 per square foot has been fixed.

An advertisement tax of Rs 1,000 per year has been fixed for the introduction party advertisements written in letters made up of metal or cement with a maximum of 25 letters.