Govt Plans Three-Year Property Tax Waiver for Private Sector Entities Hit by Gen G Protest

The government has prepared an action plan to provide a three-year property tax waiver to private businesses affected by the recent Gen Z movement.

The decision follows widespread physical damage caused during protests on September 8 and 9. In response, the government has formulated a comprehensive action plan for the reconstruction and rehabilitation of the private sector. The plan was prepared under the leadership of National Planning Commission Vice-Chair Dr Prakash Kumar Shrestha.

According to the plan, property tax waivers will be granted to private businesses for up to three years, based on the extent of damage. As property tax is collected by local governments, the federal government will request local levels to implement the waiver.

The action plan also proposes requesting local governments to waive map approval fees for rebuilding damaged structures. It further states that insurance claims for insured properties will be settled promptly. In case of liquidity shortages in insurance companies, arrangements will be made to provide short-term concessional loans through Nepal Rastra Bank, Employees Provident Fund, and Citizen Investment Trust.

Similarly, the federal government will request provincial governments to waive taxes for the deregistration of completely damaged private vehicles. Businesses that had taken working capital loans but lost their assets entirely will be allowed to convert such loans into installment-based repayment schemes.

The plan also includes extending the deadline for loan rescheduling and restructuring until mid-July 2026. Provisions will be made to extend the grace period for businesses based on the time required to resume operations.

Vice-Chair Shrestha said the Cabinet has already approved the action plan, which will now move into the implementation phase. “The plan has been designed for execution by all three tiers of government and will be implemented in phases,” he said.

Relief support will also be provided for private vehicles, mobile phones, laptops, and clothing damaged within government office premises during the protests. Based on police verification reports, District Administration Offices will provide relief of up to 25 percent of the total loss.

Preliminary estimates show that the protests caused total damages worth Rs 33.54 billion to private businesses and households. Of the total, losses worth Rs 27.49 billion were incurred by private businesses, while households suffered damages amounting to Rs 6.058 billion.