Looking into local government finances

Revenue mobilisation in metropolitan cities is satisfactory, unlike in sub-metropolitan cities.

The tax revenue rights of local governments include property tax, house rent tax, house land registration fee, vehicle tax, service charge, tourism fee, advertisement tax, business tax, land tax and entertainment tax, among others. Some revenue-raising rights are shared with the provinces. And in order to avoid complications, a single tax administration system has been created where one level of government collects the money and distributes it to another. For example, the provincial government collects vehicle tax and shares 40 percent of it with the local government. Similarly, local governments collect property registration fees and share 40 percent of the money with the provinces. Currently, the government of Nepal has been collecting the fee on behalf of local governments.