KATHMANDU: Nepal’s long-pending new vehicle and transport law is likely to move forward once the new government takes office, replacing the outdated Vehicle and Transport Management Act, 2049.
The Ministry of Physical Infrastructure and Transport had already prepared the draft bill titled “Vehicle and Transport Management Bill, 2081” and forwarded it to the Cabinet in mid-2025. However, the bill was returned after a change in government and has remained pending for nearly a year.
With a new government expected to be formed under the leadership of Balendra Shah on March 27, 2026, the proposal is likely to be revived. Officials say the draft can either be approved as it is or revised before resubmission.
According to the ministry, once finalized, the bill will be sent to the Ministry of Finance and Ministry of Law for approval before Cabinet endorsement. After Cabinet approval, it will be registered in Parliament and move through the legislative process, likely via committee discussions.
The proposed law introduces several key reforms aimed at improving road safety, traffic management, and transportation services.
Key proposed provisions:
- The maximum fine for late renewal is proposed to be reduced from 500% to 300%. Penalties beyond one year of expiry are also lowered across all categories.
- A maximum speed of 50 km/h is proposed in urban areas. Emergency vehicles such as ambulances and fire trucks will be exempt.
- Pedestrians violating road rules can be fined up to Rs 500 on the spot by traffic inspectors.
- The number of punishable offenses will increase from 20 to 34. Fines will range from Rs 100 to Rs 50,000 depending on the violation.
- The minimum age for two- and three-wheelers will increase from 16 to 18 years. Four-wheelers will require a minimum age of 21 years, and heavy vehicles 23 years.
- Drivers operating taxis, school buses, and public vehicles must obtain a commercial license. A minimum education level of Grade 8 is required.
- A penalty of Rs 1,000 is proposed for smoking while operating a vehicle.
- The Department of Transport Management will issue international driving permits to eligible Nepali license holders.
The ministry stated that the bill aims to make Nepal’s transport system safer, more reliable, and better aligned with modern vehicle technology and growing traffic demand.
