Government Proposes Mandatory GPS Devices For Passenger And Goods Vehicles

The government has proposed a legal provision requiring passenger vehicles and goods transport vehicles registered in Nepal to install GPS devices, with fines of up to Rs. 50,000 for the first violation and up to Rs. 1 lakh for repeated violations, under a finance-related bill registered in the House of Representatives by Finance Minister Dr. Swarnim Wagle.

The proposal has been included in the bill introduced to amend and repeal several finance-related laws. The bill seeks to amend the Value Added Tax Act, 2052, by adding a new Section 28A after the existing Section 28.

GPS Device Must Be Registered

According to the proposed provision, owners of transport vehicles registered in Nepal, or those to be registered in the future, must install a working GPS device that shows the vehicle’s location.

The serial number of the GPS device must be registered with the concerned department according to the standards set by the department.

Which Vehicles Will Be Covered?

The proposed rule defines transport vehicles broadly. It will apply to passenger vehicles and vehicles used to carry goods, including lorries, trucks, mini trucks, containers, bullets, tankers, pickups, vans and tractors used for commercial transportation.

Online Monitoring System

The bill also proposes a web-based online vehicle monitoring system. Vehicle owners or users carrying goods for business purposes must enter transport details into the online system before transporting goods.

The department will be allowed to regularly monitor whether the required details have been entered into the system.

Fine For Violations

If a vehicle owner or user fails to follow the proposed rule, a tax officer may impose a fine of up to Rs. 50,000 for the first violation.

For each repeated violation, the fine may go up to Rs. 1 lakh.

Printed Documents Required During Transport

The proposed provision also says vehicle users must carry a printed copy of the goods declaration and other documents specified by the department throughout the transport period.

The government says the proposed system is aimed at improving monitoring of commercial transport, strengthening tax compliance and making goods movement more traceable through technology.