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Presentation on PAVA on 18th JUNE 09 by the Department of National Properties Property Assesment and Valuation Agency. |
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LAND COMPENSATION RATES - 2009
DEPARTMENT OF NATIONAL PROPERTIES PROPERTY ASSESSMENT AND VALUATION
AGENCY
(Rural and Urban land compensation rates including building/structures depreciation guide when
acquired by the Government)
Introduction
Driven by the demand for economic development and improvement of the well-being of citizens,
governments in every country maintain and exercise the power to expropriate (compulsorily
take) private properties for public purpose. But this government’s action negatively impacts the
livelihoods of those whose assets are taken. Therefore, valuation must be done in the best
manner so that the affected persons are either given the replacement of land or compensated in
full
Overviews
Section 151 of land act 2007 mandates MoF to establish the PAVA
First task force formed in November 2007
Second core task force formed in June 2008 (6 members)
No proper specific agency dealing with the assessment and valuation of land and
properties
Different agencies and financial institutions have different methods of assessing land
and properties which are done for different purposes
Urgent need to streamline the assessment and valuation processes
Necessity to establish an agency vetted with:
sufficient powers and responsibilities
together with qualified staff and
strong political and administrative will and support.
Many countries have a central valuation agency that is responsible for:
conducting market research and analyzing market price data,
determining valuation models and testing mass valuation methodology,
estimating real property values for equitable taxation,
It is expected that the establishment of PAVA will be useful, but not limited to, in the
following ways:
Help in establishing a formalized land and property market.
Directly or indirectly help avoid land hoarding and speculation
Facilitate in fixing land and property taxes, lease rents, compensation rates.
Assist in generating internal revenue of the country
Facilitate streamlining of all land and property related economics under one
umbrella
Address the growing socio‐economic inequality in an equitable manner
Improved and balanced regional development and resource allocation
Is seen as a step forward to achieving the national goal of Gross National
Happiness
Undertake field visits to verify details of cases for valuation for acquisition,
disposal or leasing.
Review & adjudicate cases related to compensation on acquisition, disposal of
properties or leasing. |
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