KATHMANDU: The government has registered a bill in the House of Representatives seeking to repeal four economic laws and one regulation while introducing amendments aimed at modernizing revenue administration and improving public service delivery.
The “Bill to Amend and Repeal Some Nepal Laws Related to Economic Affairs, 2026”, registered in Parliament on July 7, proposes legal reforms to remove overlapping provisions, align laws with the federal governance system, and make revenue administration more technology-friendly.
According to the Ministry of Finance, the proposed changes are necessary to remove legal and institutional provisions that no longer align with the Constitution and the current federal structure, while ensuring faster and more effective public services.
The bill proposes repealing the Provincial Development Plans (Implementation) Act, 2013, Nepali Currency Circulation Promotion Act, 2014, Excise Duty Stamp Act, 2019, Revenue Leakage (Investigation and Control) Act, 1995, Financial Intermediation Institutions Act, 1998, and the Revenue Leakage (Investigation and Control) Regulation, 2013.
It also includes amendments to the Value Added Tax Act, 1995, Income Tax Act, 2002, and the Customs Act, 2025.
GPS tracking proposed for commercial transport vehicles
The bill proposes a new provision under the Value Added Tax Act requiring commercial goods transport vehicles to be linked with a web-based online transport monitoring system.
According to the proposed amendment, vehicles registered under existing laws transporting goods for commercial purposes must enter complete transportation details into the online system before beginning their journey.
The bill also proposes mandatory installation of operational GPS devices capable of providing real-time location information in all registered and soon-to-be-registered transport vehicles according to government-set standards.
The serial numbers of the GPS devices would also need to be registered with the concerned authority.
However, transport vehicles operating in certain specified areas may be exempted from the GPS requirement.
Owners or users of transport vehicles who fail to enter required details into the online system, do not carry necessary documents, or violate GPS-related requirements may face fines of up to Rs 50,000 for the first violation and up to Rs 100,000 for subsequent violations.
New provisions for non-tax revenue collection
The bill also proposes significant amendments to the Income Tax Act, including the introduction of a new definition of “non-tax revenue” under Section 2.
Under the proposed provision, non-tax revenue would include fees, charges, service fees, royalties, dividends, penalties and principal repayment amounts collected under existing laws. Interest charged on such amounts would also be classified as non-tax revenue.
The bill proposes adding a new Section 72(A) to establish procedures for determining and collecting non-tax revenue.
Under the proposed arrangement, authorities would be able to investigate and determine unpaid non-tax obligations in accordance with government instructions.
If an investigation finds additional non-tax liabilities, a penalty equivalent to 100 percent of the outstanding amount would be imposed.
The government expects the proposed legislation to expand the use of information technology in revenue administration, enable real-time monitoring of transport systems, improve non-tax revenue collection and replace outdated legal provisions with a framework suited to Nepal’s federal governance structure.
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