The government has initiated a major overhaul of Nepal’s financial legal framework by proposing the repeal of five existing laws and amendments to several key tax and customs legislations through a new bill registered in Parliament.
Speaking during a meeting of the House of Representatives, Finance Minister Dr. Swarnim Wagle said the proposed reforms are intended to eliminate outdated provisions, remove legal duplication, simplify regulatory processes, and make Nepal’s financial laws more responsive to current economic realities.
To facilitate the reforms, the government has tabled the Bill to Amend and Repeal Certain Nepali Laws Related to Finance in Parliament.
Under the proposed legislation, the government plans to repeal the following five Acts:
- Provincial Development Plans (Implementation) Act
- Nepalese Currency Circulation Act
- Income Stamp Duty Act
- Revenue Leakage (Investigation and Control) Act
- Financial Intermediation Institutions Act
The bill also proposes repealing the Revenue Leakage (Investigation and Control) Regulations, which currently govern the enforcement framework for revenue-related offences.
In addition to repealing obsolete laws, the government has proposed amendments to several major financial legislations, including the:
- Value Added Tax (VAT) Act
- Income Tax Act
- Customs Act
According to Finance Minister Wagle, many of the existing financial laws no longer adequately address present-day administrative and economic challenges. He said legal overlaps, ambiguous provisions, and procedural complexities have created implementation difficulties for both regulators and taxpayers, making comprehensive reform necessary.
The proposed amendments are expected to modernize Nepal’s fiscal and taxation framework, improve legal clarity, and enhance the efficiency of revenue administration while aligning financial legislation with evolving economic and governance requirements.
The bill will now undergo parliamentary deliberation before any of the proposed repeals and amendments take legal effect.
