KATHMANDU: A motor vehicle operates efficiently only for a certain number of years. As vehicles age, their performance deteriorates, which leads to higher risks of accidents, increased emissions, and rising maintenance and fuel costs.
Phasing out older vehicles, therefore, becomes essential for both environmental and economic reasons. Because of this, most countries have implemented scrappage policies, limiting the lifespan of vehicles to 15-20 years.
Nepal has yet to introduce a comprehensive national policy for the scrapping of vehicles. However, the government has stopped renewing registration of public vehicles older than 20 years. No such limit exists for private vehicles, though.
With the transition to federalism, the authority to regulate the transportation sector has been delegated to provincial governments. Provincial governments have taken a different approach to the age limit of motor vehicles. Here we take stock of vehicle age regulations in all seven provinces.
Koshi Province
Koshi has not set a specific age limit for vehicle scrappage. The Vehicle and Transport Management Act, 2019, of the province has no provision related to the operational lifespan of vehicles.
Currently, the province adheres to federal guidelines, which require public vehicles to be scrapped after 20 years. Private and government vehicles can be renewed beyond 15 years, but an additional 5% tax is levied annually.
Interestingly, even if a vehicle is older than 20 years, owners can pay just the tax for the final year to have it scrapped.
Madhesh Province
Madhesh Province has implemented its own vehicle age limits through the Madhesh Province Vehicle and Transport Management Act, 2024. Under this law, electric public vehicles must be scrapped after **30 years, while petrol/diesel public vehicles must be scrapped after 20 years.
According to Sunil Kumar Sah, Information Officer at the Ministry of Labor and Transport, Madhesh Province, private vehicles older than 15 years incur an ‘old age’ tax of 5% on top of regular taxes.
Bagmati Province
Bagmati Province has age limits for public vehicles, but none for private or government-owned vehicles. As per the Vehicle and Transport Management Act, 2018, public vehicles with combustion engines must be scrapped after 20 years, while the operational lifespan of electric public vehicles has been set at 30 years.
Private and government vehicles can be operated indefinitely as long as they are roadworthy. After 15 years, however, a 5% ‘old age’ tax is applied to all vehicles. The province also allows the conversion of scrapped public vehicles into electric or environmentally friendly alternatives.
Gandaki Province
Gandaki Province has established clear scrappage rules for both public and private vehicles. According to the Vehicle and Transport Management Regulations, 2023, all electric vehicles used as public transport must be scrapped after 30 years. Fossil fuel-powered public vehicles and private vehicles must be scrapped after 20 and 25 years, respectively. The province also allows the conversion of conventional vehicles to eco-friendly electric alternatives.
Lumbini Province
Lumbini has not introduced a separate scrappage policy. Though the Road Vehicle, Transport and Transportation Act, 2019, regulates transport, it does not specify vehicle age limits.
According to Rishidev Aryal, undersecretary at the Ministry of Industry, Tourism and Transport, the province follows federal rules on scrappage of vehicles. This means public vehicles are not renewed after 20 years, while private vehicles may be renewed beyond 15 years with an additional 5% annual tax.
Karnali Province
Karnali Province has introduced provisions for the scrappage of public vehicles through the Vehicles and Transport Management Act, 2024. As per the law, electric public vehicles must be scrapped after 30 years, while those running on petrol and diesel must be scrapped after 20 years.
There are no scrappage provisions for private or government vehicles. However, as in other provinces, vehicles older than 15 years can be renewed with an additional 5% annual tax, according to Mukunda Nath Yogi, chief of the Transport Management Office, Surkhet.
Sudurpashchim Province
Sudurpashchim Province has not set its scrappage regulations despite enacting the Vehicle and Transport Management Act, 2022.
Public vehicles are deregistered after 20 years based on the federal government policy. No age limit has been established for private vehicles. However, vehicles older than 15 years must pass a technical inspection and are subject to a 5% annual renewal tax.
According to Binod Kumar Mali, chief of the Transport Management Office, Dhangadhi, discussions are ongoing to introduce a formal scrappage policy in the upcoming fiscal year.
