Three years ago, the Auditor General's Office asked for justification for the government’s revenue exemption on vehicle assembly plants. That year, Bajaj, which assembles two-wheelers in Nepal, received an exemption worth Rs767 million in excise duty and VAT on imported spares.
Since then, Yamaha, Hero, Honda, and TVS have all set up two-wheeler assembly plants in Nepal, and most motorcycles now sold in the country are assembled here. The distributor of Hyundai vehicles Laxmi Intercontinental is even assembling cars in Nepal.
These companies get a 50% rebate on excise duty but there is no value addition, they do not use local materials or resources, rendering the tax exemption they enjoy rewarding the captains of industry, and not citizens. The cost savings are not passed down to the consumers, instead two-wheelers assembled in Nepal are as expensive as imported ones.
An advisory committee on tax system reform last year recommended gradually doing away with the Rs200 billion in revenue exemptions that the government provides every year that does little to boost the economy or generate employment.
“Year after year, we have a different finance minister who hands out tax exemptions to cronies. This is disastrous and should be abolished,” says one of the members of the committee, Ram Prasad Gyanwaly, a professor of economics at Tribhuvan University.
Every year around budget time, there is a big debate about taxing electric vehicles. On one side are environmentally conscious groups in favour of tax rebates, while others consider it a luxury that needs to be taxed. But rebates on private EVs and battery-powered buses would reduce the petroleum import bill and clean up the air-- an argument that is lost in the annual cacophony.
One in every five Nepalis (6 million people) live in poverty, which means they earn Rs200 or less daily. They can barely make a living, let alone afford education or regular healthcare. Most are forced to migrate.
This monsoon was deadly on Nepal’s roads because taxpayers' money did not get to where it could save lives. It is not fair to award large tax rebates to individuals so they can drive their SUVs on potholed highways.
Seventeen years ago, the government announced that it would give a 50% VAT refund to businesses importing mobile phones, the argument being that it would control the theft of mobile phones and reduce the market price. Two years later, this figure was increased to 60%. But a task force three years since has concluded that this tax exemption worth billions has nothing to do with consumers but only goes to benefit powerful importers with political connections.
The number of goods and services with VAT exemptions should be decreasing every year, but it has been increasing annually. The International Monetary Fund (IMF) has also reminded the government that the current system of VAT refunds and tax exemptions is not working. If concessions must be given, it says, that should be a subsidy through the budget.
Then there is the whole question of transparency in announcing these exemptions at budget time every year. Two years ago, nearly Rs100 billion in tax exemptions were handed out through the Economic Act and the Customs Act, even though such exceptions are only allowed for certain items like foreign loans and diplomatic facilities.
Nepal’s airlines are also exempted from paying customs duty on spare parts, even though the same exception is not made for surface public transport companies that may need it more.
Even more anomalous was a budget two years ago during when Finance Minister Janardan Sharma allowed the import of 10 buses at 1% customs duty for under construction five-star hotels. Such irregularities are widespread in other sectors including oil, jute, private healthcare as well as LPG. Tax exemptions in Nepal are essentially making the rich richer and the poor poorer.
The Auditor General’s report goes on to state that there is no record of the basis on which these exemptions were made, and an analysis about how it would benefit the economy. There is no attempt to correlate the tax cuts and rebates with encouraging manufacturing, creating jobs, and attracting investment. It is not difficult to see that it is you-scratch-my-back-I-scratch-yours.
India is doing away with tax exemptions to stamp our political cronyism, even though it has been only partly successful.
Committee member Laxman Aryal put it simply: "If tax exemptions do not help in job creation, economic expansion and growth in manufacturing, it is ill-gotten.”
Ramesh Kumar

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The taxman looteth

<img width="1050" height="696" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108101144/636a25c89c7e80680e0439dfjpeg.jpg" alt=""/>The Supreme Court’s verdict on Wednesday requiring the Malaysian company Axiata and Ncell Nepal to pay billions capital gains tax on their purchase of Nepal’s largest private telecom provider Ncell will end a <a href="http://archive.nepalitimes.com/blogs/thebrief/2016/06/03/taxing-time-for-ncell/" target="_blank" rel="noopener">controversy</a> that has dragged on for three years, but is expected to further chill <a href="https://archive.nepalitimes.com/regular-columns/Comment/making-nepal-fdi-friendly,853" target="_blank" rel="noopener">Nepal’s foreign investment climate</a>.A full bench of the apex court headed by Chief Justice Cholendra Shumsher Rana decided after two days of hearings that Reynolds Holdings Ltd was a shell company and the real owner of <a href="http://archive.nepalitimes.com/blogs/thebrief/2016/05/16/the-tax-in-question/" target="_blank" rel="noopener">Ncell</a> was <a href="http://archive.nepalitimes.com/blogs/thebrief/2015/12/21/axiata-buys-80-stake-in-ncell/comment-page-1/" target="_blank" rel="noopener">Axiata</a>, and it was liable to pay the tax along with Ncell Nepal.Justices Rana, Mira Khadka, Bishwambhar Prasad Shrestha, Ananda Mohan Bhattarai and Tanka Bahadur Moktan were deliberating on a public interest litigation writ filed by former secretary and advocate Dwarika Nath Dhungel and six others that Ncell Nepal and Axiata were responsible to pay capital gains tax when they bought the company from the <a href="http://archive.nepalitimes.com/article/interview/Nepal-very,1104" target="_blank" rel="noopener">Swedish-Finnish telecom company TeliaSonera</a> in 2016.When TeliaSonera sold Reynolds Holdings shares in Ncell to Axiata for over $1 billion, Nepal’s Large Tax-payers’ Office had said Reynolds owed the government Rs35 billion in taxes and demanded it pay the amount and fines to a total of Rs61 billion.Ncell Nepal refused to pay that full amount, and transferred only Rs21 billion capital gains tax. After this, the writ was filed, and the Supreme Court on Wednesday also rejected a case filed by Ncell.The case became controversial after two foreign investors traded ownership of a Nepal-based telecom company. Since TeliaSonera has already left Nepal, the Court found that the buyer is liable to pay capital gains tax if the seller did not.Senior advocate Surendra Bhandari says that it is international practice that the seller has to pay capital gains tax on any sale of assets, but says the Supreme Court is right in assessing that the seller was allowed to leave the country without paying tax and to put the onus on the buyer.Wednesday decision now sets a precedent for the buyer to also be responsible for paying capital gains tax. Officials at the Internal Revenue Service say that although the country’s treasury will benefit from the tax payment, there has been no investigation into why the seller was allowed to get away without paying taxes, and fears that the case will have negative repercussions on future investment.Eighty percent of Ncell’s ownership is with Reylonds Holding registered in the British Virgin Islands and 20% with Niraj Govinda Shrestha. Ncell’s main promoter was Reynolds Holding through TeliaSonera’s office in Norway.According to Nepal’s tax laws, TeliaSonera’s sale of Ncell to Axiata had a capital gains tax liability of Rs35 billion. Axiata had written to the Internal Revenue Office before the sale if it was liable to pay capital gains tax in Nepal, but there was no reply from its director at the time, Chudamani Sharma.After that the tax controversy got mired in politics, with various party leaders and former CIAA chief <a href="https://archive.nepalitimes.com/regular-columns/Legalese/parliament-and-court-plays,822" target="_blank" rel="noopener">Lokman Singh Karki</a> vying for underhand deals that would let the guilty go free. Says advocate Bhandari: “The Supreme Court decision seems to be driven by the logic that any buyer should first inquire about the liabilities of the seller before any purchase.”However, other retired revenue officials say it is unfair to blame Axiata, and ask it to pay capital gains tax that should have been paid by TeliaSonera. He says the really guilty party here are the politicians who allowed TeliaSonera to leave without paying taxes, and this will dim Nepal’s investment climate just before an Investment Summit planned for next month, and after <a href="https://www.nepalitimes.com/here-now/to-davos-with-hammer-and-sickle/" target="_blank" rel="noopener">Prime Minister KP Oli’s visit to Davos</a> with the message that <a href="https://www.nepalitimes.com/editorial/crony-communism/" target="_blank" rel="noopener">Nepal was open for business</a>.The Surpeme Court verdict has also exposed a loophole in Nepal’s tax laws that allows shell companies to get away without paying taxes. TeliaSonera had its dividends frozen in Nepal by the Large Tax-payers’ Office, but the Supreme Court allowed the company to repatriate its profits.   According to the <a href="https://www.nepalitimes.com/latest/nepalis-in-tax-havens-swiss-banks-money-laundering/" target="_blank" rel="noopener">Nepal Leaks exposes</a> by the Centre for Investigative Journalism and the International Consortium of Investigative Journalists, Ncell owners had used the company to launder money as foreign direct investment. Ajeya Raj Sumargi, a businessman close to the former Maoist party and Birendra Mahato of the Federal Socialist Forum Nepal and brother of billionaire overseas Nepali Upendra Mahato were implicated in documents leaked through the Panama Papers about tax havens.The verdict this week opens the door for Nepal to tax FDI that is coming in from offshore tax havens.   Read also: <a href="https://archive.nepalitimes.com/regular-columns/Comment/making-nepal-fdi-friendly,853" target="_blank" rel="noopener">Making Nepal FDI friendly,</a> Shyamal K Shrestha<a href="http://archive.nepalitimes.com/news.php?id=962#.XFwMylUzaUk" target="_blank" rel="noopener">Fight for FDI</a>, Ashutosh Tiwari<a href="https://archive.nepalitimes.com/article/from-nepali-press/Ncell-has-complied-to-all-obligations,3047" target="_blank" rel="noopener">"Ncell has obliged to all obligations"</a>

Supreme Court weighs in on Ncell tax dispute

One aspect of colonial cartography of South Asia leaps out in this must-see exhibition – while the coastline of India, Ceylon, Burma are extraordinarily accurate in maps made more than 200 years ago, the Himalayan hinterland is wholly approximate and inexact. The accuracy improves as modern survey techniques are introduced by atlas-makers, but even then formidable terrain and forbidden lands thwart precision. Map aficionados will be fascinated by the 40 antique maps from The Rajbhandari Collection on display at the exhibition ‘Imaging South Asia: Nepal in the Making at Kathmandu Art Gallery’ at Baber Mahal Revisited from 13 February - 17 March.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20260211090252_0cbeb88674a97c6292e2b43b2135df219257ca641cbd4723e9aabf5541c2b258.jpg" data-media-id="editor_0" data-image-id="20260211090252_0cbeb88674a97c6292e2b43b2135df219257ca641cbd4723e9aabf5541c2b258" data-rendition-name="original" width="4160" height="3485" loading="lazy" alt="Map Land NT"> </figure>  The first maps were made on clay tablets and cave paintings, but maps improved with Chinese maritime charts of Southeast Asia and beyond. Nautical maps created during the European Age of Exploration used geometry, latitude and longitude. Competition for colonial riches rested on the accuracy of these maps. The Portuguese had the lead in the 15th century, but were soon overtaken by the Spanish with Columbus voyaging to India but landing up in the Americas.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20260211090252_1fb21d20cf29b408119f5279ce666e73dee089356e52277d753a27e3440364eb.jpg" data-media-id="editor_1" data-image-id="20260211090252_1fb21d20cf29b408119f5279ce666e73dee089356e52277d753a27e3440364eb" data-rendition-name="original" width="4030" height="3407" loading="lazy" alt="Map Land NT"> </figure>  European mapping of the coastline of peninsular India &nbsp;began after Vasco de Gama sailed around the Horn of Africa to arrive at what is now Kerala in 1498. The British and French struggled for control of India, and the Carnatic Wars of the 19th century were extensions of their rivalry in Europe.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20260211090252_0fb0969dc3e07c5a77123b4aa5eb0f11d2ffea73c108077f7e4d1892d6bd4bb6.jpg" data-media-id="editor_2" data-image-id="20260211090252_0fb0969dc3e07c5a77123b4aa5eb0f11d2ffea73c108077f7e4d1892d6bd4bb6" data-rendition-name="original" width="2842" height="4160" loading="lazy" alt="Map Land NT"> </figure>  While most of the maps at this exhibition were commissioned by the East India Company and the Survey of India, there are quite a few made by Parisian cartographers and feature Pondicherry and the Danish trading outpost at Tranquebar. Followed chronologically, the maps show improvements in cartographic techniques. The earliest French map L’Inde of J D Barbié du Bocage from 1760 is a copper engraving with hand painted colours demarcating boundaries. ‘Napaul’, ‘Gorka’ and ‘Catmando’ are depicted. The rivers of India are precisely drawn, as is the Brahmaputra (Yarou Tsanpou) even though locations across the rest of Tibet are rough estimates.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20260211090252_486dc1b12f391550516be164f27170d4702a69b5125c1b8c4b10f76fdae4c0b1.jpg" data-media-id="editor_3" data-image-id="20260211090252_486dc1b12f391550516be164f27170d4702a69b5125c1b8c4b10f76fdae4c0b1" data-rendition-name="original" width="1675" height="604" loading="lazy" alt="Map Land NT"> </figure>  The 1781 map Carte des Indes en deçà et au-delà du Gange of Rigobert Bonne has slightly more detail about Nepal with even ‘Pattan’ and ‘Bagmally’ river marked. William Darton’s 1802 map has ‘Nogarcot’ and ‘Mocaumpour’ wrongly placed to the east of the valley of ‘Napaul’. Samuel Arrowsmith’s 1828 map ‘India and the Birman Empire’ has Nepal’s rough boundaries demarcated for the first time within a hand-coloured green border, with the mountain ‘Dholagiri’ and ‘Dhunchi’ appearing for the first time. The 1835 map by Boston-based American cartographer Thomas Bradford has a more precise ‘Burrampooter’ river with ‘Sgigatoe’, ‘Lassa’ and ‘Bootan’ marked. In Nepal, ‘Batgan’, ‘Macwampour’ and ‘Lelit Pattan’ appear near ‘Catmandu’.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20260211090252_5509c8e043a74b3e34e399c0684ca8eef7fc79953ee0dd18aedc738e8189d552.jpg" data-media-id="editor_4" data-image-id="20260211090252_5509c8e043a74b3e34e399c0684ca8eef7fc79953ee0dd18aedc738e8189d552" data-rendition-name="original" width="4094" height="3646" loading="lazy" alt="Map Land NT"> </figure>  One striking landmark appears consistently through a century of map-making from 1760 onwards, and that is the sacred Yamdrok Tso near Lhasa. It is precisely located, although it is drawn as a circular lake called ‘Jamdro or Palto Lake’ till J Bartholomew’s lithographic map in 1893 Constable’s Hand Atlas of India. Bartholomew’s map is also where ‘Mt Everest’ appears for the first time with its altitude ’29,002ft’ after Peak XV was calculated to be the highest mountain in the world by the Survey of India. Meanwhile, ‘Kinchinjunga’ appears in some of the earlier maps from the mid-1800s, north of ‘Dorjeloo’. The maps did not only have locations of towns, rivers and mountains but also other interesting facts about places. History buffs will find much to pore over in these maps.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20260211090252_8280c979b175946a2ac29e22b7a2b2427f7f36f22093c3456524f1f529311498.jpg" data-media-id="editor_5" data-image-id="20260211090252_8280c979b175946a2ac29e22b7a2b2427f7f36f22093c3456524f1f529311498" data-rendition-name="original" width="4160" height="2762" loading="lazy" alt="Map Land NT"> </figure>  Many have sites of major British battles while conquering India. The ‘British India’ map by J Rapkin has dates and times of the ‘Principle Massacres’ during the Indian Mutiny of 1857. The map also shows India’s growing railway network with completed lines and those ‘in progress’. Narrow gauge lines can be seen in successive maps snaking up to the Nepal border to haul sal logs for sleepers for India’s expanding railway network. Many maps were drawn by British military intelligence. One even has the Kuti route of the Nepal Army while invading Tibet in 1791, and the Chinese Army’s advance in hot pursuit through Kerung to Nuwakot.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20260211090252_a41ff6a7453f95d1e83c12ed3f831911d65ebd4d2389e0e3b774252dfa037132.jpg" data-media-id="editor_6" data-image-id="20260211090252_a41ff6a7453f95d1e83c12ed3f831911d65ebd4d2389e0e3b774252dfa037132" data-rendition-name="original" width="1173" height="679" loading="lazy" alt="Map Land NT"> </figure>  Pre-1857 maps show the western Tarai as a part of British India, but in later ones the Naya Muluk districts of Banke, Bardia, Kailali and Kanchanpur have reverted back to Nepal. The maps clearly mark Nepal as an independent nation, and represent it differently from Indian princely states. The Atlas of India of 1846 shows the ‘Dominion of the King of Nepal’.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20260211090252_52132146d9ee8b922560b98e90d866149715d7f53ced408b5f3af8f3b142a07b.jpg" data-media-id="editor_7" data-image-id="20260211090252_52132146d9ee8b922560b98e90d866149715d7f53ced408b5f3af8f3b142a07b" data-rendition-name="original" width="4149" height="3682" loading="lazy" alt="Map Land NT"> </figure>  Visitors will be curious about Nepal's claim to Limpiyadhura and Lipu Lek. A map by Mason &amp; Payne from 1846 clearly shows the ‘Kallee River’ as being the border between Nepal and British India, with Kalapni within Nepal. The Lipu Gad tributary (which India claims is the border) is not marked. Some other maps, however, seem to show the border not following the Kali river to Limpiyadhura but the tributary up to Lipu Lek.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2026021112024_9a1b6055a9fbecca7b64c3882c205efb336aac03e64ecf43a2044cb079cd699f.jpg" data-media-id="editor_8" data-image-id="2026021112024_9a1b6055a9fbecca7b64c3882c205efb336aac03e64ecf43a2044cb079cd699f" data-rendition-name="original" width="875" height="1215" loading="lazy" alt="Map Land NT"> </figure>  Imaging South Asia: Nepal in the Making&nbsp; Kathmandu Art Gallery, Baber Mahal Revisited&nbsp; 13 February – 17 March For guided walk-throughs and curatorial tours: +977 1-5318048 Panel discussions: -Cartographic Practices from the &nbsp;Gorkha Polity to the Present with Buddhi Narayan Shrestha and Kanak Mani Dixit&nbsp; Friday, 13 February, 4pm -Mapping Beyond Borders with Akhilesh Upadhyay and Amish Raj Mulmi Wednesday, 25 February, 4pm&nbsp;

Map land

The recent Nepali Times Substack post titled ‘Unresident Nepalis’ made me realise I also belong to the category of Nepalis who are technically Non-resident Nepali (NRN), but want to ‘permanently reside inside Nepal’.&nbsp;
Although this was meant as a joke, it is ironic that many of those who go abroad long to come back home, and those who have not emigrated cannot think of a good enough reason to stay back in Nepal.&nbsp;
As soon as the NRN Citizenship was officially introduced in late 2023, I had tried to apply for one but was shut down before even submitting my documents as the district administration office firmly told my then lawyer that I needed to prove “तिन पुस्ता” proof of three generations of Nepalis from my father’s side.&nbsp;
My late father was from Japan and relinquished his citizenship to become a Naturalised Nepali citizen in 2006. Three years ago, I dismissed the rejection with the thought that I will try again later when government officials would gain more experience with such applications.&nbsp;
Now, with an ailing mother and an energetic toddler, I felt the need to act soon and reached out to a law firm that specialises in NRN citizenship applications. To my surprise, they were positive after reviewing my documents, although they did warn me that we may need to overcome some obstacles.&nbsp;
In 2023, I had applied in the district office where my father had received his naturalised citizenship, but now the suggestion was to try from the district where my mother had received her Nepali ancestral origin “बंसागज” citizenship.&nbsp;
The lawyers pointed to the NRN citizenship mandate which clearly states that it can be acquired via a Nepali origin father, mother, grandfather or grandmother. The firm helped arrange the necessary documents required and the first step was to get a “सिफारिस” &nbsp;recommendation letter from my mother’s ward office.&nbsp;
This was the first hurdle as the ward office was unsure if they could issue such a letter, so they checked in with their head office, and luckily we received the go ahead. After persistent follow up from the law associates, they were able to provide us with a recommendation letter and we filled out the application forms.&nbsp;
The law firm wisely suggested that I take the paperwork myself to my mother’s district office while they stayed in the background in case I needed help explaining my situation.&nbsp;
With a big smile and cheerful tone, I dutifully followed the process and to my surprise, I found most of the officials ready to help without creating unnecessary hurdles. The application has to be signed off by the Chief District Officer (CDO) or Assistant CDO and just when I thought wow, I am going to breeze through this, one officer noticed that my father’s naturalised citizenship was from a different district and told me that I should apply for my NRN from there.&nbsp;
I explained that my father has already passed away and as he was not originally a Nepali, therefore it is not possible for me to get my NRN from his documents, as the requirement is ancestral “बंसागज” citizenship. The officer then went to check with their seniors and later told me that I would need police verification as an extra precaution.&nbsp;
Off I went to the police headquarters where they issued a sealed letter to be given to the police station that was in the same vicinity as my mother’s ward office. At the station I was told to get four people who are not my relatives to testify our documents are true.&nbsp;
This process happened to be more stressful than dealing with the government offices. At first, it turned out that most of my mother’s old neighbours had already passed away or had citizenship papers from another area. Others confirmed their availability, but later had conflicting schedules. Luckily, one very helpful old neighbour was able to arrange for enough people to verify the documents.&nbsp;
Encouraged that the end of the tunnel was in sight, I went back to the district office with all the requested documents, and after some initial pushback, I was finally referred to meet the official who signs off the documents before it goes to the CDO.&nbsp;
As luck would have it, the officials were in a meeting that lasted more than two hours, and I had to give my mother her insulin shot and noodles from the cafeteria in the waiting area.&nbsp;
When we were finally able to meet the officer, he didn’t even look at my papers properly and started questioning my lawyers whether they had even read the law, how could I apply for Nepali citizenship when I already had a Japanese passport, etc. He somehow assumed that I was looking to get a normal Nepali citizenship from my mother’s side, and we informed him that I was only looking to get an NRN citizenship, after which his tone became more apologetic and said that he would need to look into the law more closely.&nbsp;
It had already been three full days of working through each step of the process, and I had no problem waiting another day for the conclusion.&nbsp;
Perhaps because this NRN citizenship is a fairly new law and perhaps a lot of NRNs apply from the Nepal’s embassies in their country of domicile, throughout my experience, officials kept on telling me that a case such as mine has not been processed before.&nbsp;
My case being that I have never had a Nepali citizenship, my father having a naturalised Nepali citizenship and my mother being the only 100% Nepali in the family. I kept on saying that just because it has never been done before does not mean that it cannot be done, and sure enough, the next day the officer signed off on my documents, even kindly saying that they should have highly respected my application upon learning about my late father and his contributions to Nepal.&nbsp;
Although the intricacies of the NRN citizenship law have not been fully hacked out such as the transfer of land ownership, it is definitely a positive step in securing the rights and aspirations of fellow NRNs as many would agree that no matter where we go, “यो मन त मेरो नेपाली हो!”&nbsp;
Sonia Miyahara, Managing Director of Hotel Everest View, Trans Himalayan Tours &amp; Trekking Pvt Ltd &amp; Himalaya Kanko Kaihatsu Co. Ltd.

How I got my NRN Citizenship in Nepal

Besides being an election year in Nepal, 2026 is also the year of anniversaries. It is exactly 30 years since the Maoists launched their armed struggle on <a href="https://nepalitimes.com/editorial/13-february">13 February 1996</a>, and it was on 27 April 2006 that the ceasefire came into effect after a month of massive pro-democracy protests.
Alas, <a href="https://nepalitimes.com/editorial/not-ever-again">three decades on</a>, the decade-long conflict that claimed 17,000 lives has been <a href="https://nepalitimes.com/banner/ghosts-of-war">air brushed from our history</a>. For the survivors, and the families of those disappeared and killed, memories of loss and suffering are fading. The party that fought the war in Mao’s name has dropped it.
It is important on this day to remember not to forget that <a href="https://archive.nepalitimes.com/news.php?id=3203">violent decade</a> -- so that it does not happen again, and so the youth movement that has led to this election will also not be in vain.
The 8 September 2025 rally, <a href="https://nepalitimes.com/news/nepal-s-8-september-massacre">the massacre that followed</a>, and the nationwide mayhem and carnage the next day were largely a result of public anger boiling over. Nepalis had been let down repeatedly by rulers promising revolution in the name of the ‘people’: from the 1990 People’s Movement I, to the Maoist ‘People’s War’, and the 2006 People’s Movement II.
There are some positive residual effects of the insurgency. One-third of the Maoist militia was <a href="https://archive.nepalitimes.com/article/nation/Nation-sibling-war-juna-rai,731">composed of women</a>, this empowered not just the female guerrillas themselves, but indirectly made a whole generation of young women aware of their rights.&nbsp;
The peace process itself resulted in the Maoists entering the democratic mainstream, and the induction of many of the guerrillas into the national army – a rare occurrence after a conflict.
The ceasefire was followed by an interim government, and the first elected <a href="https://nepalitimes.com/editorial/the-letter-and-spirit">Constituent Assembly</a> abolished the monarchy in 2008. Deadlock over the model of federalism meant a second election had to be held in 2013, and the new Constitution <a href="https://archive.nepalitimes.com/regular-columns/by-the-way/new-constitution-should-adopt-inclusive-democracy-with-federalism-republicanism-secularism,538">finally promulgated in 2015</a>.&nbsp;
That statute was supposed to devolve political decision-making away from Kathmandu to autonomous provinces, improve inclusive representation of women and hitherto excluded castes and ethnicities at all three levels of government, ensure accountability and good governance to generate jobs and lift living standards.
There were seven governments in ten years after 2015, and tottering coalitions one after another failed to fulfil any of those provisions in the Constitution. There were subliminal gains in representation of women thanks to affirmative action, but as this election shows, women candidates are still used as proxies by patriarchal parties.&nbsp;
Since the two warring sides of the Maoist war both became the state, sharing power in dozens of coalition cabinets since 2006, they colluded to bury the <a href="https://nepalitimes.com/news/nepal-s-unpunished-war-crimes">transitional justice process</a>.
The former supreme commander of the Maoists Pushpa Kamal Dahal (Prachanda) has become prime minister three times in the last 20 years. He is contesting this election from Rukum East, where he marked the 30th anniversary of the start of armed struggle on Friday.
The word ‘Maoist’ has been erased from the Nepali Communist Party which Dahal formed with more than a dozen other smaller leftist outfits. His main rival, Janardan Sharma, quit the Maoists and is standing for elections in Rukum West.
Both former comrades are competing for the hearts and minds of people of this former base area from where the Maoists went on warpath on 13 February 1996 by attacking a police station in Athbiskot, and simultaneously on targets in <a href="https://archive.nepalitimes.com/news.php?id=7812">Holeri of Rolpa</a>, Sindhuli and Gorkha.
The former ideologue of the Maoist party, <a href="https://archive.nepalitimes.com/article/editorial/20-years-wasted-in-war,2850">Baburam Bhattarai</a>, was the architect of the revolution while Dahal was the <a href="https://archive.nepalitimes.com/news.php?id=6369#.Y-XIii8w1KM">executor</a>. Bhattarai submitted a list of 40 demands to the <a href="https://nepalitimes.com/editorial/deubas-denouement">Sher Bahadur Deuba</a> (during his first tenure as prime minister in 1995) but did not wait for a reply before launching the armed struggle.
The Maoists felt that the constitutional monarchy after 1990 was too feudal, and a patronage-driven parliamentary system too slow to bring about change. Besides, the democratic parties were accused of using state security to prevent Maoist candidates from winning elections.
The Maoists followed Mao’s Red Book to the letter, attacking police stations, looting weapons and targeting local elected governments, eliminating ‘class enemies' with summary executions.&nbsp;
They destroyed telecommunication towers, highways, bridges and airfields in remote areas. Threats forced health posts, schools, post offices to be withdrawn from areas where people needed them the most. The country’s development was pushed back decades.
Nepal in the early 1990s was ripe for revolution. There was inequality, social injustice, exclusion, and the political parties in Kathmandu were too busy squabbling to do their job. The Maoists wanted an end to the monarchy, but in 2001 the monarchy imploded with the royal massacre.
ABSOLUTE POWER
King Gyanendra succeeded his <a href="https://archive.nepalitimes.com/news.php?id=8338">murdered brother</a> to the throne, and took the country back to absolute rule with a military-backed coup in 2005. Within a year, street protests forced him to step aside. And by 2008, it was too late to save the monarchy.
We can look back as far as we want to the roots of the Maoist conflict. It can be blamed on elected leaders post-1990 who abandoned the people once in power, the 30 years of partyless Panchayat system that stifled dissent and let social pressures build up, or even 100 years of Rana rule.&nbsp;
It was the prolonged indifference on the part of successive rulers in Kathmandu that fed public discontent. These accumulated grievances were also the reason for the <a href="https://nepalitimes.com/news/nepal-s-gen-z-protest-turns-deadly">September 2025 events</a>.&nbsp;
During China’s Cultural Revolution, Mao Zedong said: ‘The old has to be uprooted to be replaced with the new’, and that could almost be the anthem of the GenZ movement and this election.
The objective conditions that drove the Maoist insurgency 30 years ago are still evident today. And much will depend on the government(s) that will be formed after March.&nbsp;

Remembering not to forget

As Nepal mourned its dead in the September violence and public buildings smouldered, former Chief Justice Sushila Karki was installed as prime minister to pull the country back from the brink.
She gave herself six months to conduct elections, and has gone about achieving that goal with a single-minded sense of purpose. Supporters praise her poise and decisiveness, while others fault her for not pursuing justice for the death and destruction, and postponing the release of the inquiry commission yet again.&nbsp;
But that also highlights her steadfastness to hold free, fair and peaceful elections on 5 March, and not allow it be derailed by distractions. It has not been easy for the 73-year-old — she has had to balance radical calls for scrapping the Constitution while appeasing entrenched leaders of established parties.&nbsp;
Karki has displayed patience, determination, foresight, and, above all, a deep love for country. It has been a lonely struggle, no doubt.
The very youth who voted for her on Discord demanded her resignation, &nbsp;she had to cajole discredited leaders to take part in polls, and she was not dismayed when her chosen ministers abandoned the government to contest polls. And this is not to mention geopolitical demands that must be happening behind the scenes.
This being Nepal, there is endless speculation about who is ‘pulling the strings’. Yet her record both as chief justice and interim prime minister offer ample evidence of integrity and principled leadership.
Regardless of geopolitical interpretations of her intentions, Karki is a Nepali leader through and through who has lifted herself from the highest judicial office to the highest executive position, adhering to both mandates.
Organising national elections within five months was a formidable task, which many doubted — and are still doubting — can be accomplished. Karki has worked closely with the Election Commission, security forces, and mainstream political parties to ensure participation.&nbsp;
In doing so, she has set an example not only for Nepal but for South Asia. Bangladesh, which went through its own GenZ protest in 2024 and held elections on Thursday offers a study in contrast. The Awami League and its exiled prime minister who was deposed have been banned from front contesting, there is growing influence of the Jamaat-e-Islami-led alliance.
Her first address to the National Assembly on 2 February was characteristically candid. She laid out the facts sequentially and emphasised Nepal’s most urgent priority: holding elections on schedule and transferring authority to elected representatives. Timely election was the only constitutional path forward, she said.
She acknowledged that GenZ activists had pressured her to appoint certain individuals to her Cabinet. She had to personally persuade Kulman Ghising, Mahabir Pun, and Jagdish Kharel to join her Cabinet. Others she was advised to induct turned out to have controversial pasts, and she was forced to rescind the nominations. She admitted Pun resigned as education minister because he could not get legislative proposals passed.
Educated, professionally accomplished, known for her frugal lifestyle, Karki has distanced herself from the culture of excess often associated with power, and has turned down multiple invitations for foreign junkets.
Her meeting with editors at Baluwatar in December was a breath of fresh air for Nepal’s jaded journalists used to excessive displays of power and pomp. Her frankness about threats from the GenZ and pressures from disgraced party leaders drew gasps.
In the last five months, Karki has attempted to restore a sense of governance anchored in constitutional duty rather than partisan ambition. But Nepal’s problems have been decades in the making, and it would be unrealistic to expect an interim government to solve all of them at once.
Nepal now stands at a crucial juncture. Leadership alone cannot safeguard democracy, elections alone do not guarantee legitimacy. That must come from delivery, performance and accountability. Citizens casting informed votes on 5 March will determine whether Karki’s handover to leaders capable of placing national interest above party and personal agendas.
In a region where democratic transitions often falter, Nepal has another chance to demonstrate that home-grown movements, constitutional discipline, and principled leadership can coexist.&nbsp;
Whether this moment becomes a turning point depends not only on one leader, but on the collective resolve of the nation and polity.
Watch a timelapse video of how Anup Tamu drew this portrait of Sushila Karki, <a href="https://youtube.com/shorts/tchdBwBZDJE?si=PD9Sd3__t-1-lILh">here</a>.&nbsp;

nepal-tax-laws

The taxman looteth

Supreme Court weighs in on Ncell tax dispute

Map land

How I got my NRN Citizenship in Nepal

Remembering not to forget

Mission (nearly) accomplished