June 27: The Kathmandu Metropolitan City (KMC) has fixed the government rate of land inside the metropolis at the maximum of Rs 5 million per aana (342.25 square feet).

Enacting the Finance Act 2021, the KMC has fixed the aforementioned rate for the land alongside the roads in locations of Kesharmahal, Hanuman Dhoka, Thamel, Ason, Bir Hospital, Old Buspark, Bhadrakali, Putalisadak and Bag Bazaar. Similarly, the rate is applicable to the land in Maitighar, Hattisar, Kantipath, Durbarmarg and Kamaladi.

The land on the road connecting Putalisadak-Bag Bazaar-Ratna Park costs Rs 4 million per aana as per the government rate.

After fixing the land price, the KMC has fixed the land tax rate as per the progressive tax system. In the new rate, the land costing up to Rs 10 million is taxed at the rate of 0.010 percent.

In the new rate, the owner of the land with price up to Rs 10 million per aana needs to pay Rs 1,000 per annum as land tax while the owner with land price of Rs 100 million per aana has to pay Rs 174,500 in tax per annum. The tax rate gradually increases up to 0.6 percent, which is applicable for land with a price of more than Rs 100 million per aana.

source: republica, 28 June 2021