Finance Minister Waglé introduces bill to repeal six outdated finance acts

Finance Minister Dr. Swarnim Waglé has introduced a bill to amend and repeal certain Nepal Acts, aiming to eliminate ‘over-regulation’ and legal redundancies in the country’s economy. Responding to queries from lawmakers in the House of Representatives regarding the ‘Bill to Amend and Repeal Certain Nepal Acts Related to Finance’, he clarified the government’s intentions.

Minister Waglé informed that the bill proposes to repeal six acts, including the Provincial Development Plan Implementation Act 2013, the Income Stamp Duty Act 2019, and the Revenue Leakage (Investigation and Control) Act 2052. He argued that in the federal structure, the roles of provincial and local governments are now clear, and in the era of the digital economy, old laws have become irrelevant, prompting the repeal process.

Clarifying the repeal of the Revenue Leakage Act 2052, Waglé stated that provisions for investigating and penalizing tax evasion and revenue leakage are adequately covered under the Income Tax, Customs, Value Added Tax, and Excise Acts. He noted that having multiple active acts on the same subject has led to legal redundancies, increasing business costs. This reform step is based on reports from high-level economic reform commissions formed by previous governments and demands from the private sector.

According to the proposed provisions, the current structure of the Revenue Investigation Department will be dismantled. Ongoing cases related to income tax, excise, and value-added tax will be transferred to the Internal Revenue Department, while issues related to smuggling will be handed over to the Customs Department.

Offenses related to foreign exchange misappropriation will be handled by designated authorities or the Department of Money Laundering Prevention under the Foreign Exchange Act. Waglé asserted that this legal reform would also aid in implementing the standards of the international body FATF and Nepal’s commitments regarding money laundering prevention.

Additionally, he expressed a commitment to operate the vehicle tracking system more effectively through the relevant department, ensuring it is not neglected. The bill proposes to repeal six acts and amend three acts. Minister Waglé stated that the government prioritizes legal and institutional reforms to steer the economy towards improvement and create an investment-friendly environment.