The government has registered a new bill in the Parliament to repeal four old finance-related acts and one regulation to remove legal double-ups and make tax system better.
The government has registered a new bill in the Federal Parliament to repeal four old acts and one regulation related to economic sector. This bill, named ‘Bill to Amend and Repeal Some Nepal Laws Related to Finance, 2083,’ was registered in House of Representatives on Ashadh 23.
According to Finance Ministry, this bill aims to remove legal problems, end duplication of laws, and make the system fit for federal structure. It also wants to make revenue administration tech-friendly and improve public services. The government feels that some old laws are not matching the spirit of current constitution and are causing extra costs and delays.
Which Acts and Regulations are Being Repealed?
The new bill proposes to completely repeal the Provincial Development Plans (Implementation) Act, 2013, the Nepalese Currency Circulation Increase Act, 2014, and Income Stamp Duty Act, 2019. It also repeals the Revenue Leakage (Investigation and Control) Act, 2052, the Financial Intermediation Act, 2055, and the Revenue Leakage (Investigation and Control) Regulation, 2070.
On the other hand, the bill proposes to make changes in Value Added Tax Act, 2052, Income Tax Act, 2058, and Customs Act, 2082.
New Rules for Cargo Vehicles and GPS Tracking
The bill has brought a new rule under the Value Added Tax Act, 2052. Now, all vehicles carrying goods for commercial purpose must connect to a web-based online vehicle monitoring system. Before transporting any commercial goods, the vehicle owners must enter all the details in this online system.
Also, all cargo vehicles registered in Nepal must install a working GPS tracking device as per government standards, and register its serial number with the authorities. However, the bill says some transport vehicles working in specific areas might get exemption from installing GPS.
If someone does not enter details in online system, does not carry proper papers, or violates GPS rules, tax officer can fine vehicle owner or user up to Rs 50,000 for the first time. If they repeat mistake, the fine will be up to Rs 1 lakh each time.
Changes in Income Tax and Non-Tax Rules
The bill also proposes important changes in the Income Tax Act, 2058. It adds a new definition for ‘non-tax’ in Section 2 of the Act. Non-tax will mean any fees, service charges, royalties, dividends, fines, or principal refunds that must be paid under current laws. Even the interest on these amounts will be counted as non-tax.
A new Section 72(A) is proposed in the Income Tax Act for determining and collecting these non-tax amounts. If someone fails to pay their non-tax dues, the government can run investigation to find out the exact liability. If they find extra unpaid non-tax money during the probe, a 100 percent penalty will be charged on that amount.
Once this bill is passed by the Parliament, it is expected to bring modern technology into revenue administration. It will help to monitor transport in real-time, organize non-tax collection, and clean up old, outdated laws.
AI Disclaimer: This article was originally published on https://bajarkochirfar.com. It has been translated with the help of AI. For the best understanding and accurate facts, we recommend reading the original Nepali version.
