Land registration fees have soared by 150% compared to the same period last year. The government's target for this fiscal year was Rs 7.02 billion. The target has been thoroughly surpassed as there has been a collection of Rs. 9.81 billion(140% of set target) in registration fees. 

Authorities in Land Revenue Offices (LROs) were worried about not meeting the target in the first six half of 2015/16 collecting only Rs 3.2 billion against the target of Rs 5.98 billion.
In the case of taxes, the government aimed to collect Rs 12 billion on land transactions while only collecting Rs 11.9 billion in fiscal year 2015/16.

Sushil Acharya, director of the planning division at the DoLRM suggested that collection figures should not be compared with the last fiscal year. Acharya stressed that land transactions were lower than expected because of the impact of the 2015 earthquake in Kathmandu and as a result people feared buying a property in Nepal.

DoLRM increased the tax on land transactions by a mere 0.5% (5 percent compared to 4.5 last year in metropolitan cities, and to 4.5 percent compared to 4 percent in sub-metropolitan cities).

In municipalities and VDCs, the tax increased to 4 percent from 3.5 percent.This year has been fruitful for the Department of Land Reform and Management (DoLRM) and Land Revenue Offices (LROs) as they have achieved 70% of their annual revenue collection target of Rs 14 billion by the first six months.

Authorities are confident that land transactions in the valley are finally coming back on track. Following the devastating earthquake and economic blockade, an increase in tax rate assured a rise in the collection of revenue.

To get more update about the buy or sell property in Nepal visit: https://epropertynepal.com/