Registration fees for transactions of land in municipalities and other VDCs, however, have been left unchanged at 4 percent and 2 percent respectively.
Issuing a notice to Land Revenue Offices (LROs), Ministry of Finance has instructed them for the enforcement of the new rates with immediate effect in 20 VDCs of Kathmandu, 11 VDCs of Lalitpur and 5 VDCs of Bhaktapur.
The VDCs where the new rates will be applicable include Machhegaun, Sitapaila, Syuchatar, Naya Naikap, Tinthana, Balaju, Manamaiju, Gongabu, Dhapasi, Khadka Bhadrakali, Chapali, Bishnu, Kapan, Jorpati, Gokarna, Gothatar, Danchhi, Mulpani, Goldhunga and Dharmasthali in Kathmandu.
The new arrangement has also raised cost of land procurement in Imadol, Tikathali, Dhapakhel, Lubhu, Sanagaun, Sunakothi, Sainbu Bhainsepati, Harisiddhi, Thaiba, Thecho and Chapagaun in Laitpur. Land registration fee has also gone up for transactions in Katunje, Jhaukhel, Duwakot, Balkot and Dadhikot in Bhaktapur.
"The fee has been raised because these VDCs have facilities no less than municipalities. In fact, these are the preferred residential areas of top political leaders and businessmen," said Raju Basnet, officer at Department of Land Revenue and Management (DoLRM).
He informed Republica that the new change had been introduced as a pilot scheme in the Valley. "Evaluating the impact of this decision, the government will introduce new registration fee rates to cities outside the Valley in the next fiscal year," he stated.
Land transactions down
Land transactions in the Valley that slackened over the last three months continued to slow down in the 12th month (mid-June to mid-July) of 2008/09 as well.
Compared to the 9th month (mid-March to mid-April, 2009), till when the transactions had continued to soar, transactions have dropped by a quarter in the Kathmandu Valley, according to the DoLRM. The transaction dropped the most (by 48 percent) at Chabahil LRO, which records deals of land in western and eastern part of Kathmandu district.
Transactions at Kalanki LRO, which registers dealing of western and northern part of the district, too dropped by more than 26 percent over this period. Transactions in Bhaktapur and Lalitpur too have dropped by 20 percent.
"Realty market has gone quiet as banks have refrained from issuing fresh loans in the sector. On top of that, buyers too seem to be in ´wait and watch´ mood, mainly as they expect the price to go down in few months," said Basnet.
Irrespective of recent slowdown, land transactions in the Valley directly contributed Rs 3.73 billion in revenue to the government in 2008/09 fiscal . A year earlier, the land deals in Kathmandu had contributed mere Rs 1.78 billion in revenue.
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