New Legal Framework Announced: Nepal to Repeal 14 Laws Within Two Years

• Nepse Talk
• May 24, 2025
• 553 views

The Government of Nepal has unveiled an ambitious legal reform plan to repeal 14 outdated and irrelevant laws within the next two years and to consolidate some existing laws to create a new legal framework.

This plan is part of the Economic Reform Implementation Plan 2082, based on recommendations from the High-Level Economic Reform Commission 2081, chaired by former Finance Secretary Rameshwar Khanal.

🚫 Laws to be repealed Within Two Years

The government is preparing to repeal the following laws, considering them irrelevant, redundant, or outdated:

• Income Tax Stamp Duty Act, 2019
• Black Marketing and Certain Other Social Crimes and Punishment Act, 2032
• Private Forest Nationalization Act, 2013
• Administrative Procedure Rules Act, 2013
• Compensation Act, 2019
• Abolition of Birta Act, 2016
• Revenue Leak Control Act, 2052
• Foreign Investment Restriction Act, 2021
• Nepal Agency Act, 2014
• Provincial Development Program Implementation Act, 2013
• Social Conduct Reform Act, 2033
• Nepal Currency Flow Promotion Act, 2014
• Financial Intermediary Institution Act, 2055

These laws are deemed either duplicated by new laws or no longer in practical use.

🔁 Laws to be consolidated

Some old laws will be merged to create single, modern laws:

• Private Property Acquisition Act – merging the Immovable Property Acquisition Act, 2013 and the Land Acquisition Act, 2034
• Intellectual Property Rights Protection Act – merging the Patent, Design and Trademark Act, 2022 and the Copyright Act, 2059

These consolidated laws aim to provide legal clarity and align Nepal’s legal framework with international standards.

🔄 Old laws to be replaced with new ones

Two laws will be repealed and replaced with modern laws:

• Import-Export Control Act, 2013 → Import-Export Regulation Act
• Drug Act, 2035 → Health Materials Regulation Act (covering medicines as well as health equipment and materials)

These changes respond to the post-COVID era’s need for clear legal frameworks in health and supply management.

🆕 New legal frameworks to be introduced

New laws are proposed to meet development, investment, and credit-related needs:

• Construction Materials Regulation Act – for managing resources like sand, gravel, and stones
• Public Warehouse Act – for storage and goods exchange systems
• Credit Information Reporting Act – to develop credit rating and financial information systems
• Debt Relief Act – to support small entrepreneurs and economically distressed individuals
• Limited Liability Partnership (LLP) Act – for registering new types of investment and partnership companies

These laws are particularly aimed at supporting small and medium enterprises, urban development, investment promotion, and improved financial access.

🧭 The backbone of economic reform – Legal modernization

This reform plan focuses on modernizing Nepal’s economy by:

• Improving the investment environment
• Simplifying the legal system
• Creating a business-friendly legal framework
• Supporting innovation and infrastructure development

Specifically, the LLP Act will create alternative investment structures, and the Credit Information Act will bring transparency to the credit system.

⚖️ Challenges and opportunities for implementation within two years

The government’s capacity and willpower will be tested in implementing this comprehensive legal transformation within two years. Effective coordination among ministries, parliament, and regulatory bodies will be essential.