The government has decided to give a 25-40 percent discount on the registration fee for property jointly registered in the names of the husband and wife after it is purchased.

This is the same exemption that is provided to women when property is registered in their name. The ordinance says that the same treatment will be given regarding the registration fee when property is registered under joint ownership of the husband and wife.

The discount on the registration fee ranges from 25 percent in the Kathmandu Valley and other urban areas to 30 percent in rural areas and 40 percent in remote areas. The government will give an additional 10 percent discount if the property is registered in the name of single women.

If property is transferred from single ownership to joint ownership of the husband and wife, they need to pay a registration fee of just Rs 100, according to a provision in the financial ordinance.

The provision, which is contained in this year’s financial ordinance, is designed to increase women’s ownership of fixed property as most of such assets are registered in men’s name.

“All these measures have been taken in order to increase women’s ownership of property which will reduce their vulnerability and strengthen their financial security,” said Kamal Prasad Timalsina, under secretary at the Department of Land Reform and Management.

Meanwhile, the government has increased the charge for providing home service to register property. The fee has been fixed at Rs 2,000 to Rs 15,000 from the earlier range of Rs 1,500 to Rs 5,000.

As per the new provision, the fee will be Rs 15,000 in municipalities within the Kathmandu valley, while it has been fixed at Rs 10,000 for village development committees (VDCs) of the valley.? The rate is Rs 7,000 in municipalities of Terai and Rs 3,000 in Terai VDCs. In hills, the fee has been fixed at Rs 5,000 in municipalities and Rs 2,000 in VDCs.

“The move was taken to discourage the tendency of asking for home service as the registration of even big properties was down under this system,” said Timalsina. The legal provision of home service, under which government officials visit the home of the applicant to process the registration, was created for the convenience of the elderly and disabled.

Timalsina said that it had been found that home service was used with the ill intention of forgery and hiding bad practices in property deals. “Even government employees were found to have received benefits from those who make shady property deals in the name of providing home service,” he added.

Meanwhile, banks and financial institutions (BFIs) will be required to pay Rs 1,000 to the Land Revenue Office for the immoveable property they accept as collateral from their own employees, while providing them loan facility as per their employees’ bylaws. For the Employee Provident Fund and the Citizen Investment Trust, the charge has been fixed at Rs 500 while providing the loan to their members.

This is the first time such a fee has been levied. “The move was taken to maintain records of collateral,” said Timalsina.

75 percent discount for farmers, entrepreneurs
The government has decided to provide a 75 percent discount on the land registration fee to farmers and entrepreneurs engaged in tea, cardamom, hydropower, fruit, cotton, coffee, vegetable, livestock, medicinal herbs or floriculture business . Kamal Prasad Timalsina, under secretary at the Department of Land Reform and Management, said the move was taken to encourage commercial farming and industrial development of products having higher potential. The tax exemption has been given to most of the products listed in Nepal Trade Integration Strategy 2010. “Exemption has been given where there is potential for export and import substitution,” said Timalsina.

source: the kathmandu post,26 August 2013