Ministry of Finance Proposes Amendments and Repeal of Dozen Economic Laws

The Ministry of Finance has introduced a bill in Parliament to repeal 15 outdated economic laws and amend three others, aligning them with the spirit of the Constitution and the federal governance structure. The bill includes provisions to improve value-added tax, income tax, and customs laws, incorporating GPS installation in transportation vehicles and enhancing controls to prevent revenue leakages. Investigations and cases related to repealed laws will be transferred from the Revenue Investigation Department to relevant bodies such as the Internal Revenue and Customs Departments, as the ministry has initiated this process. (26 Asar, Kathmandu)

The Ministry has presented the bill to modify and annul several old economic laws. According to the ministry, these laws contain provisions inconsistent with the essence of the Constitution and the current federal system. The move aims to eliminate legal redundancies and ensure more efficient public service delivery with reduced time and costs.

The Ministry plans to repeal the Provincial Development Planning (Implementation) Act 2013, Act to Promote Nepalese Currency 2014, Income Tax Tariff Act 2019, Revenue Leakage (Investigation and Control) Act 1995 (2052 BS), Financial Mediation Act 1998 (2055 BS), and Revenue Leakage (Investigation and Control) Regulation 2013 (2070 BS). Additionally, amendments are proposed for the Value-Added Tax Act 1995 (2052 BS), Income Tax Act 2001 (2058 BS), and Customs Act 2025 (2082 BS).

Finance Minister Dr. Swarnim Wagle, upon taking office on 13 Chaitra 2082 BS, announced the repeal of 15 acts including the Revenue Investigation Department and decided to form a task force for this purpose. This decision is based on the report of a high-level Economic Reform Suggestion Commission established by the government led by UML Chairperson KP Sharma Oli, which was headed by former Finance Minister Rameshwar Khanal.