KATHMANDU: The Ministry of Physical Infrastructure and Transport has forwarded the draft of the “Motor Vehicle and Transport Management Bill, 2025” to the Council of Ministers for approval. The ministry made the draft public in February to collect feedback from stakeholders.
Joint Secretary Krishna Raj Pantha, chief of the Infrastructure Development and Transport Division at the ministry, said the suggestions received from stakeholders have been incorporated and the revised draft has been sent to the Cabinet for approval.
“The draft was made public in February to collect feedbacks from stakeholders. All feedbacks received from the stakeholders have been incorporated in the Bill,” Pantha said. “We forwarded it to the cabinet a week ago.”
According to Pantha, the Bill will be registered in the Federal Parliament Secretariat once it is approved by the cabinet.
10 Important Provisions in the Draft Bill
1. License Validity Increased to 10 Years
The new bill proposes doubling the validity of driving licenses from five to 10 years. At present, driving licenses must be renewed every five years. If the Bill is enacted in the current form, driving licenses will have validity of 10 years.
2. Reduced Penalties for Late Renewal
Currently, the maximum fine for late license renewal is 500% of the renewal fee. The proposed bill reduces late penalty to a maximum of 300%. If the driving license is renewed within a year of expiry, a 100% fine will apply, which remains unchanged. If renewal is done within two years, it will attract a fine of 150% down from the existing 200%. For renewals done within three years, the fine will drop from 300% to 200%. For renewals within four years, the fine has been lowered from 400% to 250%. Similarly, renewal done within five years will attract a fine of 300%, down from the existing 500%.
3. Urban Speed Limit Set at 50 km/h
The bill proposes setting the maximum speed limit in urban areas at 50 km per hour. This limit will not apply to emergency vehicles such as ambulances and fire engines with sirens and lights in use. The draft states that speed limits on national and interprovincial highways will be determined by the Department of Transport, while other roads will follow provincial or applicable local laws.
4. Fines for Pedestrians
Transport inspectors will be authorized to impose on-the-spot fines of up to Rs 500 on pedestrians who violate traffic rules or road discipline.
5. Traffic Offence List Expanded
The number of traffic offenses eligible for immediate penalty by transport inspectors or police has been increased from the existing 20 to 34.
6. Heavier Traffic Fines
The amount of on-the-spot traffic fines will increase significantly, ranging from Rs 100 to Rs 50,000, depending on the nature of the offense—up to 33 times higher than current fines.
7. Minimum Age for Driving Licence Raised
The draft proposes raising the minimum age to obtain a driving license. As per the new provision, the minimum age requirement to obtain driving license for two- and three-wheelers has been raised from 16 to 18 years. Similarly, the minimum age requirement to obtain driving license for light four-wheelers has been increased from 16 to 21 years and for heavy vehicles from 21 to 23 years.
8. Professional Driving Licenses
The draft bill proposes categorizing driving licenses by purpose. Those operating commercial vehicles such as taxis, school buses and public buses will now be required to obtain a professional driving license. Only individuals with a minimum of up to Grade 8 are eligible for a professional driving license. However, individuals who already hold licenses before the law comes into effect will have their licenses automatically converted into commercial licenses.
9. Fine for Smoking While Driving
The bill introduces a Rs 1,000 fine for smoking while driving. At present, penalties only apply to driving under the influence of alcohol or drugs.
10. International Driving Permits from Nepal
The draft bill proposes authorizing the Department of Transport Management to issue International Driving Permits (IDPs) to Nepali citizens holding valid licenses. Once the bill is enacted, Nepali driving licenses will be recognized in over 135 countries.
