Royalty’s salaries remain untouched (Kantipuronline.com)



BY PREM KHANAL


KATHMANDU, Jan 5 -
King Gyanendra and his family have so far, not drawn the annual perks and allowances earmarked in the budget, possibly to show their displeasure over the decision of the House to slap tax on the income of royal family members.
According to a high-level government source, the Royal Palace has not approached the Kaushitoshkhana Office, the office that transfers state allocations to the Royal Palace, to take the first tranche of Rs 23.7 million allocated solely for the Royal Family's salary and allowances.

This has surprised government officials as the Royal Palace used to collect its annual budget within 48 hours after the budget announcement. "It's really surprising that the palace has not drawn the money even after six months into the fiscal year," said an official at Kaushitoshkhana.

Palace Officials did not provide reasons for the royal family's "disinterest" in the money provided by the state.

The historic proclamation of the House of Representative on May 18 declared that private property and income of royal family members would be taxed as per law. Based on the present rate, the Royal Palace will have to pay around Rs 7.5 million as income tax, which is deducted while releasing the amount.

Similarly, the cabinet on July 31 had amended the law on Royal Household Expenditure, limiting state facilities and allowances to the king, queen, crown prince, crown princess, yubarani (in the case of the eldest daughter ascending the throne) and the queen mother.

As per the new law, though the yubarani will subsequently ascend the throne, her husband will, however, not be entitled to any facilities. The government had allocated Rs 210 million for the Royal Palace in its budget for the current fiscal year. In previous years, the government used to release the yearly amount through a single payment. However, the budget for the current year has put the Royal Palace allocation under normal release procedures, which means the amount is released in three equal installments.

The Royal Palace has, however, already collected the first tranche of the budget allocated for administrative expenses, security, repair and maintenance. Of the total Rs 177.4 million allocated for current fiscal year for administrative expenses and security, repair and maintenance, the Royal Palace has received Rs 79.8 million by the end of first five months of the current fiscal year.



Posted on: 2007-01-