According to an update by Kathmandu Metropolitan City, commercial buildings (such as private marts, restaurants, and shopping complexes), hospitals, and other health service providers in Kathmandu Metropolitan City must offer their customers free parking services.

Mayor Balendra Shah (Balen) explained the provisions of the Financial Act 2080 of the Metropolitan Municipality, stating that businesses and service providers located in residential or commercial buildings are prohibited from charging parking fees to their customers.

If a building is specifically constructed for parking purposes, the property tax will be exempted for ten years from the building’s completion date. However, if the approved parking area is used for other purposes, the Metropolitan Corporation will take legal action and collect property tax and related taxes.

The law allows the city executive body to designate parking facilities in suitable areas to ensure smooth traffic flow, excluding footpaths. The city has already determined fees for existing parking facilities based on location and duration.

Depending on the area and time, the metropolis has stated that it may handle parking operations independently or in collaboration with the private sector. Separate zones, such as inner urban areas and other areas, have different parking fees.

Businesses operating parking facilities with elevators or modern technology will receive a 100% business tax discount for 5 years. Additionally, parking fees will be waived for vehicles used by disabled individuals, as well as for emergency service vehicles and other vehicles designated by the Metropolitan Municipality.

When creating building maps, underground parking areas must be specified, and if public structures obstruct commercial building parking areas, the Metropolitan Corporation will facilitate improvements to those structures. Mandatory parking spaces must be provided in designated areas based on the building’s size and purpose during construction and map approval. Digital payment systems are mandated to collect parking fees, and regular reports should be submitted to the Metropolitan Municipality.