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Unit 6: Wealth Tax/House and Land Tax and Local Tax
6.1 Objectives and Legal Provisions as to Imposition, Assessment, Payment and Recovery of Wealth Tax, House and Land Tax
Objectives: taxing the stock of wealth (not its flow) — redistribution, curbing idle property concentration, and funding local services from local assets.
Legal provisions: Nepal’s house and land (property-type) taxation is levied under the local-level framework (the Local Government Operation Act, 2074 and municipal law) — assessed on property valuation bases the municipality maintains, payable annually by the owner, with recovery through the local revenue machinery. A wealth-tax type levy in the classic sense (aggregate net wealth) has appeared in Nepal’s practice as house and land focused property taxation rather than a broad net-wealth tax — the terminology the syllabus uses maps to the property-tax family.
| Stage | House and land tax practice |
|---|---|
| Imposition | By the local law, on the property’s assessed value |
| Assessment | Local valuation rolls; taxpayer declarations |
| Payment | Annual, at the municipal counter/online |
| Recovery | Local demand notices, then coercive local recovery |
6.2 Property Exemption from Tax
Typical exempt categories (within each municipality’s law): government/public property, religious and charitable endowments, small plots below exemption thresholds, and owner-occupied low-value homes where the law so provides. Exemption policy balances revenue against hardship and public-purpose immunity.
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