Draft of new vehicle law returned by cabinet, next steps unclear

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KATHMANDU: The Cabinet has returned the draft of the new Transport and Traffic Management Bill, prepared after three years of work.

The Ministry of Physical Infrastructure and Transport had sent the draft bill, titled “Transport and Traffic Management Bill, 2081,” to the Cabinet last June.

The new government led by Sushila Karki declined to endorse the draft prepared under the previous KP Sharma Oli administration.

Ministry Secretary Keshav Kumar Sharma said the draft has come back to the ministry. He said the ministry is now coordinating with the Finance Ministry and the Law Ministry for approval. After both ministries agree, the bill will again be sent to the Cabinet.

Sharma said the country needs an updated transport law. He noted that the Cabinet may approve the draft or ask the ministry to wait for the next government.

Even with Cabinet approval, the bill cannot pass immediately. The House of Representatives is dissolved, so parliamentary procedures cannot move ahead. A bill becomes law only after approval from both Houses of Parliament and certification by the President. Implementation begins only after publication in the Nepal Gazette.

The government has set March 5, 2026, as the election date for the new House, but the timeline is not fully certain. An ordinance is possible, though unlikely at the moment.

Once approved by the Cabinet, bills are registered in Parliament. They either go to a parliamentary committee for discussion or are presented directly. Since the new transport law affects many stakeholders, it is likely to go through committee review.

The government plans to replace the Transport Management Act, 2049 with a modern and practical law. The aim is to improve safety, reliability, and accessibility in the transport sector.

The draft bill includes several updates. Key proposals include higher traffic penalties, reduced late fees for license renewal, and fines for undisciplined pedestrians, a higher minimum age for licenses, separate license categories, and permission to convert vehicles to electric power.

Draft of new vehicle law returned by cabinet, next steps unclear

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