High-level commission calls for repeal of outdated acts; Govt advised to scrap failing public institutions
KATHMANDU: The High-Level Economic Reforms Recommendation Commission has presented its report to the government, detailing strategic measures to encourage an investment-friendly environment and reduce manufacturing costs in Nepal. The Commission has stressed the importance of comprehensive legal reforms in achieving these objectives.
The Commission has proposed the repeal of several outdated Acts, including the Income Ticket Charge Act, 2019 BS (1962); the Black-marketing and Some Other Social Offences and Punishment Act, 2032 BS (1975); the Private Forest Nationalisation Act, 2013 BS (1957); and the Administrative Procedures (Regulation) Act, 2013 BS (1956).
It has further recommended the repeal of the Birta Abolition Act, 2016 BS (1959); the Compensation Act, 2019 BS (1963); the Revenue Leakage (Investigation and Control) Act, 2052 BS (1995); the Act Restricting Investment Abroad, 2021 BS (1964); and the Nepal Agency Act, 2014 BS.
Other Acts suggested for repeal include the Act to Implement Provincial Development Projects, 2013 BS; the Import and Export (Control) Act, 2013 BS (1957); the Social Practices (Reform) Act, 2033 BS (1976); An Act to Provide for Enhancement of the Circulation of Nepalese Currency, 2014 BS (1957); the Financial Intermediary Societies Act, 1999 AD; and the 'Birtawalale Birtama Rakam (Bhatti Charsa Aadi) Lagaiee Lina Khana Napaune Ain, 2015 BS' (an Act Prohibiting the Use of Birta Land for Profit by Establishing Kilns or Tannery).
The report has proposed amendments to the Drugs Act, 2035 BS (1978), suggesting the establishment of a "Drug and Health Materials (Regulation) Act" to oversee the importation, marketing, and supply of drugs, drug supplements, medicinal supplements, cosmetics, and human cell-based devices for transplantation.
Additionally, the Committee has recommended merging the Immovable Property Reacquisition Act, 2013 BS (1956) and the Land Acquisition Act, 2034 BS (1977) to create a unified "Private Property Reacquisition Act".
Similarly, it has proposed combining the Patent, Design and Trademark Act, 2022 BS (1965) and the Copyright Act, 2059 BS (2002) to establish the "Intellectual Property Right Conservation Act".
Govt advised to scrap failing public institutions, merge cement industries, and restructure revenue, airlines sectors
The Commission has also advised the government to abolish five public institutions, including the Janakpur Cigarette Factory.
In its report submitted to the government today, the Commission recommended the closure of five public institutions—Janakpur Cigarette Factory, Butwal Yarn Factory, Nepal Engineering Consultancy Service Centre, National Construction Company Nepal, and Nepal Orind Magnesite Pvt. Ltd—which have failed to sustain their operations.
The Commission also proposed that the government take over the tangible assets of these institutions, transferring them to state ownership, and repurpose these assets for more productive uses.
Additionally, it suggested merging Hetauda Cement Industry and Udayapur Cement Industry following an Asset and Liability Assessment, with the remaining shares to be sold to the private sector.
The report further recommended restructuring Nepal Airlines Corporation to operate on a commercial basis by involving foreign strategic partners. It suggested that temporarily handing over management to foreign entities could help achieve commercial viability.
It has also been proposed that the Dairy Development Committee be transferred to the provincial governments of all seven provinces as a public institution.
The Commission urged the government to amend existing company laws to ensure public institutions are managed professionally, free from political interference, and to conduct timely audits of all public institutions.
The government has been advised to establish mechanisms for appointing competent personnel to manage public institutions professionally. Furthermore, it was recommended that public institutions should not receive loans to cover employee salaries or other expenses.
The Commission also proposed the abolition of the Revenue Investigation Department. In its report, submitted to Deputy Prime Minister and Finance Minister Bishnu Prasad Paudel today, it suggested that the Department be dissolved as part of revenue system reforms.
The report stated, "The capacity of other bodies should be enhanced by abolishing the Department, given the existence of other agencies for tax investigation."
By RSS
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