Fiscal powers of the local bodies up until now were defined in the Local Authorities Act (1992-93 – 1998) and later in the Local Self-governance Act (1999 – ). The draft constitution does not go into the same level of detail as these acts – but roughly it mentions the same types of taxes and fees.
Here are examples from the Local Self-governance Act pertaining to village level:
Paragraph 55. Taxes the Village Development Committee is Entitled to Levy:
The Village Development Committee may levy the taxes as follows in its area at the rate approved by the Village Council, not exceeding the prescribed rate :-
(a) House and Land Tax : Annual house and land tax on each house and land on the basis also of size, type, design and structure of the houses within the Village Development Committee.
(b) Land Revenue or Land Tax : Land revenue or land tax on the land within the village development area.
Provided that the twenty-five per cent amount of revenue raised from land revenue or land tax shall have to be handed over to the District Development Committee.
(c) Haat (temporary weekly bazaar) Market Shop Tax : Haat market shop tax for shops kept in livestock Haat and regular Haat market, fair, fete etc. organized within the village development area.
(d) Vehicle Tax : Vehicle registration and annual vehicle tax on the prescribed vehicles within the village development area and occasional vehicle tax on all kinds of vehicles entering into its area.
Provided that, on the prescribed vehicles entered into the Kingdom of Nepal, the Village Development Committee of such village development area, through which area such vehicle enters into at first from any foreign country, may levy tax as prescribed and after payment of tax within one village development area, such tax shall not be levied again in other places.
(e) Entertainment Tax : Entertainment tax may be levied as prescribed on the places of entertainment such as permitted cinema-hall, video-hall, cultural-show hall located within the village development area.
(f) Rent and Tenancy (Bitauri) Tax : Rent and tenancy tax on the temporary shops given on rent at the Haat market places constructed, supervised or operated by itself or at unregistered (Ailani) land or road sides, within the village development area.
(g) Advertisement Tax : Advertisement tax on sign boards placed within the village development area.
(h) Business Tax : Business tax on the prescribed industry, trade, profession or occupation within the village development area.
(i) Commercial Video Tax : Commercial video tax within the village development area.
(j) Natural Resources Utilization Tax : Tax to be levied for commercial exploitation of natural resources and heritage within the village development area.
(k) To levy other taxes as prescribed.
56. Service Charges : (1) The Village Development Committee may impose the service charges as follows at the rate approved by the Village Council, for the services made available by it within its area :-
(a) Service charge on sanitation, drainage and sewerage.
(b) Tourist places entrance charge.
(c) Entrance charge on parks, garden, picnic places and view towers etc.
(d) Charge for performing entertainment activities like magic and circus.