NEFPORT ISSUE 45 – JULY 2021
REALESTATE ESTATE REAL Although the market underwent some major shocks in the first few months into the pandemic, in the last quarter, a gradual boom in the buying and selling of houses and plots of land across the country is now anticipated. Over the last quarter, the government came up with rules to strengthen the tax policies, has introduced tax e-payment, and has come up with varies ways to generate income for the country. New regulations for land holdings for real estate companies: As per
confiscated properties can be used.62
the new regulations formed by the Ministry of Land reform and Management (MoLRM) real estate companies cannot hold land which is more than 100 ropanis (12.57 acres). The agro- and forest-based industries can hold land of 200–1,500 ropanis (25.14–188.56 acres) in the hilly region and 50–150 ropanis (6.28– 18.85 acres) in the Terai (lowland) region, respectively. Manufacturing firms can use land up to 50 ropanis (6.28 acres) in hilly and 50 bighas (0.61 acres) in the Terai region. Hospitals and universities can use land up to maximum 300 ropanis (37.71 acres).60
Kathmandu Metropolitan City (KMC) to bring homeowners and entrepreneurs under the tax net: Following the tendency of
New regulation properties: The
Exemption on Land Ceiling has been established by GoN. According to the order, if any company, project, or firm requires land that exceeds the ceiling on land allowed under the prevailing law, the exemption will be granted to it based on their eligibility. The firm should apply to the Department of Land Management and Archives (DoLR) along with necessary details
for
confiscated
government has decided to use confiscated or forfeited properties for revenue generating purposes, such as leasing or renting and using land for farming purposes. A new regulation by MoLRM has been added to this effect in the Offense related to Asset and Goods Act 2070;61 however, it does not specify when the
homeowners and entrepreneurs to either evade or undervalue tax under the existing local laws, the revenue department of KMC has expedited to bring homeowners and entrepreneurs under the tax net. Some homeowners have been renting shutters of the same house for different amounts in order to show lower payable taxes to the metropolis.63
The Government of Nepal (GoN) introduces new order on the land ceiling: A new order related to
and documents. After the permission, regular monitoring and inspection will be done to ensure the land is being used as per the pre-defined objectives64 Nepal Trust (NT) loses one years rent due to a legal row with Concept Developers Private Limited: A
lease agreement between Concept Developers Private Limited, the company that built the Kathmandu Plaza Building, and NT expired in June 2020 after which NT was trying to rent out the property to the metropolitan city office. The Concept Developers filed separate writ petitions at the Patan High Court demanding a halt to the lease process with the Metropolitan City after which the High Court issued an interim offer in favor of the petitioner. The trust failed to lease out the building to the city government which resulted in the trust losing NPR 55 million (USD 0.457 million) which the trust would have earned as rent by now. 65
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