Nepal's king pays tax for the first time

KATHMANDU, Dec 9 (Reuters) Nepal's King Gyanendra has paid customs duty on his personal goods, the first time a monarch of the Himalayan nation has paid any type of tax, a government spokesman said.

Nepal's government in May stripped the king of almost all his powers and ordered him to pay tax like any other citizen of the country. The government also plans to nationalise thousands of hectares of land owned by the king.

Finance Ministry spokesman Deep Basnet said the palace had paid about 1,800 dollars in taxes incurred on cargo imported by the king and his son, Prince Paras.

''This is the first time the palace has paid any tax to get its parcel released from the customs,'' Basnet told Reuters. The king and his immediate family members were previously exempt from paying any taxes.

Nepal's monarchs have traditionally been revered as god, but King Gyanendra's popularity dipped after he sacked the government early last year, saying the move was needed to quell an anti-monarchy Maoist insurgency which has killed more than 13,000 people since 1996.

Street protests organised by Nepal's main political parties and supported by the Maoists in April forced him to hand power back to the political parties.

Last month, the government and Maoists signed a landmark peace deal declaring an end to the decade-old revolt.

They have also agreed to hold elections next year for a special assembly which would be tasked to map the country's political future and decide the fate of its monarchy.

REUTERS PB ND0956