Kathmandu, December 10
With the increment in the number of transactions of land and houses, revenue collection from land and house registration tax also surged significantly across the country in the last fiscal year.
The government collected Rs 19.29 billion revenue from land and house registration tax in the last fiscal year 2016-17, which was 39.8 per cent higher than the figure of the previous fiscal.
The government had collected Rs 13.79 billion revenue under the same heading in fiscal year 2015-16 and Rs 9.84 billion in fiscal 2014-15.
|Title||FY 2014-15||FY 2015-16||FY 2016-17|
|Land and house registration||715,190||749,310||816,789|
|Design approval of permanent buildings||26673.1||39627.1||52476.05|
|Land and house registration revenue||Rs 9.84bn||Rs 13.79bn||Rs 19.29bn|
According to the economic activities study report unveiled by Nepal Rastra Bank (NRB), 816,789 units of land and houses were registered in the last fiscal year, which was nine per cent higher than the previous fiscal. In fiscal 2015-16, a total of 749,310 units of land and houses were registered. Meanwhile, in fiscal 2014-15, 715,190 units of land and houses were registered at the Land Revenue Office, which is responsible for collecting the land and house registration tax.
Similarly, the government approved designs and drawings of 52,476 buildings in the last fiscal year, which is 32.4 per cent higher than that of the previous year. Likewise, 39,627 drawings were approved in fiscal 2015-16 and the number stood at 26,673 in fiscal 2014-15.
“Transactions of land and houses increased in the last fiscal year and that helped boost the government revenue under the land and house registration tax,” NRB said in its study report. “Unplanned plotting of land is turning out to be a major challenge for the agriculture sector and housing development too,” the study further added.
The central bank has informed that approval of house designs decreased in Kathmandu, Pokhara and Dhangadi by 3.3 per cent, 9.9 per cent and 18.2 per cent, respectively. However, it increased by 28.6 per cent in Biratnagar, 15 per cent in Janakpur, 7.9 per cent in Birgunj, 12 per cent in Siddharthanagar (Bhairahawa and Butwal) and 26.9 per cent in Nepalgunj area in the last fiscal year.
Revenue collection from house and land registration tax increased by 79.2 per cent in Dhangadi area but decreased by 2.8 per cent in Pokhara.
The central bank had conducted the study in Kathmandu, Biratnagar, Janakpur, Birgunj, Siddharthanagar, Nepalgunj and Dhangadi areas. According to NRB, it has analysed the data provided by the municipalities, sub-metropolitan cities and metropolitan cities of 57 districts across the country.
Though the financial sector faced a problem of credit crunch in the last fiscal year, transactions of land and houses increased in the country. Banks and financial institutions were unable to provide loans for housing projects due to a credit crunch in the last fiscal.
A version of this article appears in print on December 11, 2017 of The Himalayan Times.