Bagmati Province Truck Permits
31st August 2025, Kathmandu
The Nepal Truck Transport Entrepreneurs’ Federation has made a strong plea to the Bagmati Province government, urging them to reduce the high fees associated with truck permits.
Bagmati Province Truck Permits
This move comes as the federation highlights a concerning trend: businessmen are increasingly taking their vehicles to provinces with more lenient tax structures, leading to a significant drop in Bagmati Province’s revenue.
The federation argues that a reduction in fees is not just a concession but a necessary step to remain competitive and increase the province’s overall economic intake.
A high-level delegation from the federation, led by its President Hiralal Shrestha, recently met with Bagmati Province’s new leadership, including Chief Minister Indra Bahadur Baniya, Minister for Labour, Employment and Transport Jayaram Thapa, and Minister for Cooperatives and Poverty Alleviation Binu Rayamajhi Poudel.
During the meeting, the delegation extended their best wishes to the newly appointed ministers and did not hesitate to voice their primary concern: the discrepancy in truck permit fees across different provinces.
The core of the issue, as presented by the federation, is the financial disparity that encourages a phenomenon known as “tax shopping.
” As Federation General Secretary Rajendra Bikram Baniya explained, a truck permit in Madhesh Province costs a mere NPR 10,000, while the same permit in Bagmati Province is priced at a significantly higher NPR 15,000. This NPR 5,000 difference has a profound impact on the operational costs of transport businesses, pushing them to register their vehicles in Madhesh Province to save money.
“Most of our trucks operate within the Bagmati Province, but the high permit fees are a deterrent,” said General Secretary Baniya.
“Entrepreneurs are being drawn to provinces with cheaper fees, which is causing a direct decline in Bagmati’s revenue. It’s a lose-lose situation. The province loses potential income, and we, as business owners, have to navigate a complex and costly system.”
The federation’s appeal is a clear signal that the current system of varying tax rates across the country is creating major logistical and financial problems for the transport sector.
They believe that a more uniform and reasonable tax structure is essential for a healthy business environment. The current system not only affects truck owners but also creates an uneven playing field for different provinces, undermining the spirit of cooperative federalism.
In addition to the fee issue, the federation also brought up a long-standing demand to Transport Minister Jayaram Thapa: the conversion of old zonal number plates to the new provincial system.
Despite the implementation of federalism, many trucks continue to operate with number plates from the old zonal system, creating administrative confusion and hindering the seamless integration of transport services under the new provincial governance model.
The federation emphasized that this conversion is a crucial step towards modernizing the transport sector and aligning it with the country’s federal structure.
In a promising turn of events, Chief Minister Baniya, upon hearing the federation’s concerns, assured them that the issue would be addressed swiftly. According to General Secretary Baniya, the Chief Minister expressed his commitment to resolving the matter and recognized the validity of the federation’s arguments.
Furthermore, the federation has also demanded amendments to specific laws related to the transport sector to make them more business-friendly and efficient. Chief Minister Baniya responded positively to this request as well, stating that the government would initiate the necessary processes after a detailed discussion and review of the proposed changes.
The transport sector is the lifeblood of Nepal’s economy, and the issues raised by the Nepal Truck Transport Entrepreneurs’ Federation are critical to its smooth functioning.
The government’s willingness to listen and act on these demands offers hope for a more streamlined, fair, and profitable transport ecosystem in Bagmati Province.
A reduction in truck permit fees could not only reverse the trend of revenue decline but also set a precedent for inter-provincial cooperation, leading to a more harmonized and business-conducive environment across the entire country.
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