(1) The development tax shall be
collected in an amount to be set by the following percent of the price of a
land in a region or area set for the payment of compensation in acquiring
the land pursuant to Section 5:
(a) 20 per cent for a land of portion “a”,
(b) 10 per cent for a land of portion “b”.
Illustration: In acquiring a land in a region or area, compensation
has been paid by setting the price of the land at the rate of Rs. 5,000.00 per
Ropani, and out of a total of One and half Ropani of the land of a person
subjected to tax in such a region or area, half Ropani land falls within
portion “a” and One Ropani within portion “b”, the amount of development
tax required to be paid by that person pursuant to this Section shall be as
follows:
Rs. 500.00 by 20 per cent of half Ropani falling within
portion “a”
Rs. 500.00 by 10 per cent of One Ropani falling within
portion “b”
Total Rs. 1,000.00
(2) Notwithstanding anything contained in Sub-section (1), if the
Government of Nepal considers necessary to reduce the rate of the
development tax leviable on a land or make exemption from the
development tax levilable on the land, in consideration of the situation of
the land or for any other reasons, it may, by a Notification in the Nepal
Gazette, reduce the rate of the development tax or make exemption from
the development tax. The Government of Nepal shall also take into account
of the recommendation of the compensation fixation committee in relation
to the reduction of the rate of the development tax or make exemption from
the development tax.