(1) When land is acquired in accordance with section 5, in the area or locality in which such land is valued and compensation is given, the following percentage of the same value in such area or locality shall be collected as development tax:-
(A) 20 percent on the land of Section “A”. (b) 10 percent on the land of Section "B". Example:- When acquiring land in an area, the value of one plantation land is Rs. 5000.- If the compensation has been distributed and a person who has to pay development tax in such area, half of the total land of one and a half plantation falls in section "A" and one plantation land falls in section "B", the amount of development tax payable by him according to this section It will be as follows:- Rs.500 for 20 percent of the half-planted land in section "A".- 10 percent of one-planted land in section "B" will be Rs. 500.- Total Rs.1000.-
(2) Notwithstanding anything written in sub-section (1), if the Government of Nepal deems it necessary to reduce the rate of development tax on such land or exempt it so that no development tax is levied, taking into account the transfer of any land or for any other reason, it may publish a notice in the Nepal Gazette to reduce the rate of such development tax or can give exemption. Accordingly, the Government of Nepal will also consider the recommendation of the Compensation Determination Committee regarding the reduction or exemption of the development tax rate.