Submit your Article

Revenue collection from land and housing transactions has increased by 13.89 percent to Rs 33.2bn over the first nine months of fiscal year 2024/25.

According to the Department of Land Management and Archive (DoLMA), revenue collection from land and housing transactions in the same period of the previous fiscal year stood at Rs 29.15bn. Capital gains tax (CGT) from such transactions also rose by 17 percent in the nine-month period. That total CGT collections from land and housing transactions from mid-July 2024 to mid-April 2025 remained at Rs 12.8bn, up from Rs 10.32bn collected between mid-July 2023 and mid-April 2024.

An official from the DoLMA said the increase in CGT is due to the rise in land valuation and the revised property assessment rates introduced this fiscal year. A five percent CGT is levied on profits from land sales within five years, while the rate drops to 2.5 percent for sales after that period. Despite the higher revenue, the DoLMA noted that real estate transaction volumes have not improved compared to the previous fiscal year.

Land Revenue Offices collect various taxes, including registration fees, under nearly half a dozen categories from real estate transactions. Among these, capital gains tax is the largest source of revenue after registration fees. According to the DoLMA, land revenue offices across the country have collected an average monthly revenue of Rs 3.68bn this fiscal year. Similarly, the monthly average CGT collection has remained at Rs 1.34bn over the first nine months of 2024/25.

The real estate market, which had been declining since early 2025, saw a sudden surge in Chaitra (mid-March to mid-April). The DoLMA recorded 49,832 transactions nationwide during the month—the highest so far this fiscal year. The first quarter of 2024/25 saw total revenue collections of Rs 10bn from land and housing transactions. While the collection started strong in Shrawan with Rs 3.83bn, it gradually declined to Rs 3.09bn in Bhadra and further to Rs 3.08bn in Ashoj, indicating a slowing trend in real estate activity during the initial months.

The second quarter began with a concerning dip, as revenue plummeted to Rs 2.7bn in Kartik—the lowest monthly collection in the fiscal year. However, the market rebounded strongly in Mangsir with Rs 3.87bn, followed by an even better performance in Poush at Rs 4.25bn. This remarkable recovery pushed the second quarter’s total to Rs 10.82bn. The third quarter maintained this positive momentum, with total revenue of Rs 3.87bn in Magh and climbing to Rs 4.12bn in Falgun. The quarter peaked in Chaitra with Rs 4.39bn–the highest monthly collection recorded so far this fiscal year. This brought the third quarter’s total to Rs 12.38bn.
 

Minister for Foreign Affairs Arzu Rana Deuba has said that Nepal is always against terrorism and strongly condemns terrorism in any manifestation. Addressing a gathering organized by the Indian Embassy in Nepal to pay tributes to those who lost their lives in the terrorist attack in Pahalgam, Kashmir, India, she made it clear that Nepal is always against terrorism and in favor of peace. “Nepal strongly condemns all forms and manifestations of terrorism. Nepal always stands against terrorist activities carried out anywhere, anytime and for any purpose,” she said.

Stating that double standards should never be adopted while dealing with terrorism, she clarified that Nepal is firmly committed to ensuring that its territory is not used by any terrorist group for any reason and against any country and people. Therefore, Minister Rana said that Nepal has also strongly condemned in strongest possible terms the terrorist attack that took place in Pahalgam, Kashmir.

She also said that Nepal stands by the people and the government of India at this hour of sorrow and stands shoulder to shoulder with India in the fight against terrorism. Recalling the deep ties between Nepal and India, Minister Rana said that this relationship is not only a matter of diplomacy but also a matter of shared history, culture and cooperation for centuries. “Our open borders are a symbol of trust in each other and our family ties also bind us. We have always stood together in times of happiness or crisis. When the earthquake devastated Nepal, India was the first to extend a helping hand,” she said.

Minister Rana also thanked the Government of India for helping to repatriate the mortal remains of Nepali youth Sudip Neupane, a victim of the Pahalgam tragedy, and other affected people to Nepal. On the occasion, she paid tributes to those who lost their lives in the terrorist attack and extended condolences to the bereaved families. 

US Senator Jeanne Shaheen of the US Senate Foreign Relations Committee has opposed the Department of Government Efficiency’s effort to dismantle the Millennium Challenge Corporation (MCC). 

Issuing a press statement, he said that since its establishment under President George W Bush over 20 years ago, the MCC has a proven track record of delivering economically transformative, transparent and accountable returns on foreign assistance through its projects, helping partner countries such as Kosovo and Senegal strengthen their democratic institutions and reduce their dependency on aid in the long-term. “The Millennium Challenge Corporation is a bipartisan, independent government agency established in law by Congress to reduce global poverty through economic growth,” he said.  

Just last year, Congress passed, and President Biden signed into law, a bipartisan bill that expands MCC’s pool of eligible candidate countries. MCC is a necessary tool to counter China’s Belt and Road Initiative and dismantling it will open the door for the PRC to further exploit and capitalize on America’s retreat, as it has with Nepal, he said.  “This destructive dismantling of MCC does nothing to make America stronger; it only harms our economic and national security interests.”

Meanwhile, for the current fiscal year, MCA-Nepal has a budget of Rs 13.36bn. Of this amount,
Rs 9.9bn would be funded by the MCC and the remaining Rs 3.45bn would be borne from internal sources.

However, after MCA-Nepal did not spend the budget, about 58 percent of the budget has been returned to the Ministry of Finance. Not only in the current fiscal year but also in the last fiscal year, MCA-Nepal’s expenditure was unsatisfactory. MCA-Nepal had spent only about 30 percent of the total budget for the last fiscal year and returned the remaining 70 percent of the budget.

The government had allocated Rs 10.84bn for the last fiscal year to spend on projects under MCA-Nepal, out of which Rs 7.60bn was returned. The budget could not be spent as per the target as the compensation distribution and acquisition of land required for the construction of the power transmission line has slowed down. 

MCA-Nepal is among the agencies returning the highest amounts under capital expenditures.

The coalition government of the Nepali Congress and CPN-UML, which came to power with the promise of stability, has failed to deliver on its mission. Now, it has become almost a daily mantra for Prime Minister KP Sharma Oli and NC President Sher Bahadur Deuba to assure the public that their coalition remains intact. Every day, Prime Minister Oli seeks reassurance from his colleague Deuba that there is no threat to the government’s survival.

For instance, upon returning from a tour of Thailand, Deuba told reporters that there were no problems within the coalition. Prime Minister Oli has since been using this statement as a reference point to claim that his government is moving ahead smoothly. The two leaders are meeting frequently, but that does not necessarily mean that everything is fine. Tensions could be gradually building between the two parties. A frequently asked question among the media is about the longevity of the government. This has created a public perception that the coalition could collapse anytime, even though it may not happen immediately. It has shaped a widespread belief that even a government formed by the two largest parties has failed to convey a message of political stability.

Amidst this uncertainty, Prime Minister Oli and Deuba held a one-on-one meeting on April 26, although neither side has disclosed what actually transpired. Rumors of government change last week prompted Deuba to call Oli and assure him that the NC’s support remains firm. However, their failure to effectively handle contentious issues has fueled doubts about the coalition’s future. Past examples show how even minor issues have triggered the fall of governments. For instance, it took a long time for the two parties to agree on removing Kulman Ghising from the post of executive director of the Nepal Electricity Authority. A more recent example is the delayed appointment of the Governor of Nepal Rastra Bank due to differences between the NC and UML.

Above all, internal dynamics within the NC pose a major threat to the coalition. The decision to form an alliance with the UML was made without prior discussions in the party; it was largely driven by Deuba and his spouse, Arzu Rana Deuba, who currently serves as the Minister for Foreign Affairs. As a result, many senior NC leaders do not fully own the decision, and two distinct camps have emerged within the party. Leaders such as Purna Bahadur Khadka, NP Saud and Prakash Sharan Mahat favored continuing the coalition with the Maoists and would prefer forming a new government led by the NC. Just a few days ago, Khadka said, “I have told Prime Minister Oli to mend ways and improve the government’s performance.”

Meanwhile, leaders like Shekhar Koirala, Gagan Kumar Thapa and Bishwa Prakash Sharma are positioning themselves as populist figures aspiring to lead the party. Rather than offering unconditional support to the coalition, they view national issues through the lens of their personal political ambitions. For example, they have demanded that the government address the teachers’ demands, even though fulfilling them may not be feasible. At a public event this week, Thapa warned that the party would leave the government if it had to compromise on fundamental party principles.

Furthermore, Koirala and Thapa—both aspiring to become party president and future prime ministers—are working to prevent Deuba from becoming prime minister again. They fear that Deuba could use state power during the party leadership selection process to favor his loyalists. They believe that if the current coalition collapses, it would weaken Deuba’s chances of returning as prime minister. For some time, efforts have been underway to change the NC parliamentary party leader, but Koirala and Thapa themselves are not aligned, viewing each other as competitors for the party presidency—something that strategically benefits Deuba. In addition, there is speculation that some NC leaders are under pressure from India to break the alliance with the UML.

Adding to the complexity, CPN (Maoist Center) Chairman Pushpa Kamal Dahal has reportedly conveyed to senior NC leaders that he is ready to support Deuba as prime minister until the next election, gradually winning over a section of the NC leadership. Deuba’s phone call to Dahal before his departure for Thailand also raised eyebrows within the UML. Previously, Deuba had publicly emphasized that the NC should lead the government, given its emergence as the largest party in the 2022 elections. However, Dahal had refused to support the NC’s claim and instead aligned with the UML to form the government.

Within the NC, there is growing criticism that the coalition between the two largest parties has failed to deliver on its promises. For example, although the two parties had agreed to initiate the process of amending the constitution, they have yet to take any steps. Senior NC leaders say that Prime Minister Oli’s failure to address the country’s pressing issues is fueling public frustration, which has tarnished the party’s image. One NC leader remarked, “We do not feel comfortable staying on in the government with the UML.”

Despite repeated assurances from Deuba, UML and Oli remain uncertain about the NC’s continued support. UML leaders say external forces are actively working to destabilize the government, and at some point, the NC might withdraw its support and form a new alliance with the Maoists, sidelining the UML. This week, Oli also stated that he would not compromise on every issue just to remain in power.