It is that time of the year again. The last-minute construction spree is underway to make up for chronic underspending of capital expenditure, right ahead of the new budget to be presented in Parliament on 29 May. The paradox is that while the government faces a severe cash crunch due to falling revenue, it spent only one-third of the development budget in the last 10 months of the fiscal year.&nbsp; The new parties in Parliament like the RSP have been trying to shake things up and urge multi-partisan consultations before the budget, but given the obsolete structure and leadership of the parties, not much is expected to change. But there is a strong argument for tax reform since the government faces a major challenge in balancing revenue with expenditure. The previous government’s ban on luxury items to augment depleting foreign reserves post-pandemic and increased bank interest led to the decline of real estate transactions resulting directly in a drop in revenue. But what makes matters worse is that the government has been profligate in spending beyond its means. Salaries, allowances, administrative expenses, grants and loans have all gone up. The government collected Rs756 billion in revenue in the last 10 months against the target of Rs1.4 trillion whereas its expenditure has exceeded Rs1.04 trillion.&nbsp; Read also: <a href="https://www.nepalitimes.com/editorial/institutionalised-inequality">Institutionalised inequality</a>, Editorial Taxation is the primary source of income for any government. Contrary to what the wealthiest Nepalis think, the government is not run with their tax money but by what ordinary citizens pay in taxes. &nbsp;While tax evasion concentrates the wealth within the already privileged, the tax the poor pay is not proportional to their earnings. &nbsp; Nepal’s liberal economic policy since 1990 was expected to alleviate the income gap with trickle down effect, but the economic disparity in society is more stark than ever. A 2020 report Equality for Prosperity showed that while the wealthiest 20% of Nepalis own 56.2% of wealth, the poor 20% have only 4.1%. This economic gap is likely to have widened with the current crisis.&nbsp; This income gap is not just in Nepal. Worldwide, a skewed tax system is blamed for rising inequality. A new Oxfam report points out that two-thirds of the wealth that has increased globally after the Covid-19 pandemic is in the hands of the richest 1%. It recommends tax reforms based on wealth accumulation. “Because the tax system is not progressive in Nepal, wealth is piling up in the hands of the rich, while the income of the poor is not increasing,” explains economist Dilliraj Khanal. “We don't have a system of taxing the rich because of policy weakness and dominance of middlemen.”&nbsp; Read also: <a href="https://www.nepalitimes.com/opinion/nepals-care-economy">Nepal's care economy</a>, Bina Pradhan  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20230526050528_6fe0c49de563e6fb210c25501e835186d93ecd57b2f63f8ff8154dca49daeee7.png" data-media-id="editor_2" data-image-id="20230526050528_6fe0c49de563e6fb210c25501e835186d93ecd57b2f63f8ff8154dca49daeee7" data-rendition-name="original" width="741" height="541" loading="lazy" alt="Rich-poor gap graph"> </figure>  Who pays taxes? Two-thirds of the government's annual revenue is collected not from corporations and industry, but from various taxes and revenue paid by the general public. The share of tax on corporate profit is in fact very small.&nbsp; In fiscal year 2021/22, the government collected a total of Rs989.62 billion in revenue. Of this, the income tax paid by businesses from the profits earned through private companies is only 5%. So while income tax did bring in Rs229 billion which is 24% of total revenue collected, this amount is largely from the income tax paid by ordinary citizens on their personal income. The tax paid from the profits of private companies is only Rs47.5 billion. When adding public limited companies (issued shares to the general public) and other types of companies, corporate income tax comes to only about Rs114 billion,which is just 11% of the government’s annual revenue.&nbsp; The government collected Rs314 billion from VAT last year, and this made up about one-third of total government revenue. Similarly, Rs241 billion was collected as customs duty and Rs155 billion as excise. “Society with unequal income and wealth, but equal taxes, burdens the poor and favours the rich, it is a regressive tax system that makes it difficult for the poor to survive,” says Khanal. For example, VAT is the same 13% for all Nepalis – rich and poor. &nbsp; “In essence, five-star hotels in Kathmandu and the poor are both taxed equally for LPG fuel,” he adds. “From a social justice standpoint, taxes must be based on income.” Read also: <a href="https://www.nepalitimes.com/here-now/ground-reality-of-landlessness-in-nepal/" target="_blank">Ground reality of landlessness in Nepal</a>, Rabi Giri Taxation expert Roop Khadka disagrees, saying it is impractical to have a different VAT rate for rich and poor, and even if it was introduced it would be impossible to enforce. Instead, Khadka favours revoking VAT exemption on goods and services consumed by the upper classes, which are worth nearly Rs100 billion per year. Tax evasion by the rich is another problem that needs to be tightened, and collusion between business and politicians means that the government itself abets tax evasion. Real estate speculation has helped select groups in Nepal to become immensely rich immediately, but the government collects a bare minimum in tax from profits made in land transactions. &nbsp; A real estate sale within five years is required to pay 7% of its profit. If the transition happens within 10 years, only 5% of the profit is taxed. This means most of the astronomical profits made in real estate sales in the past years have gone into the pockets of brokers and large landowners. On the other hand, the 60th report of the Auditor General's Office says many evade tax by showing less than the actual value of the property. The VAT bill scandal 10 years ago also revealed the widespread tax evasion by the commercial sector. The politics of patronage means that businesses are now colluding with politicians and bureaucrats to loot the treasury. The Tax Settlement Commission decided to collect Rs9.54 billion from businesses that have not paid tax for a long time, but the Auditor General's Office later revealed that the decision was made in cahoots with the businesses themselves who actually needed to pay Rs30.52 billion. The most egregious and blatant wrongdoing was by former Finance Minister Janardhan Sharma who was making backroom deals with select business groups importing steel rods and electric vehicles so their products got customised tax breaks in the budget last year. The deal cost Sharma his ministership but the unholy nexus between politicians and business continues with impunity.&nbsp; Read also: <a href="https://www.nepalitimes.com/here-now/state-sponsored-economic-crisis-ikcxxmnp">State-sponsored economic crisis</a>, Ramesh Kumar  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20230526050528_60a9385914649170d0496b8864bcb751477820b43554c68bec524f6e2412d39b.jpg" data-media-id="editor_5" data-image-id="20230526050528_60a9385914649170d0496b8864bcb751477820b43554c68bec524f6e2412d39b" data-rendition-name="original" width="6124" height="4082" loading="lazy" alt="Kathmandu labourer NT"> <figcaption>Photo: SUMAN NEPALI</figcaption> </figure>  Alternative to the wealth tax In this state, the only sector keeping Nepal’s economy afloat is the estimated $9 billion Nepalis abroad send home every year. Still, Nepal’s debt has reached 43% of GDP, a sharp rise from 28% a decade ago. This will have a direct impact on the tax system. Sooner or later, the government will raise taxes. But for whom?&nbsp; If the status quo continues, and the poor are subjected to more taxes the income gap will widen further, inviting social unrest. Taxation relative to the size of the economy is about 22% in Nepal, one of the highest in South Asia. But for every Rs100 the government receives as revenue, only Rs23 is collected through income tax. The rest is made up of common citizens paying for the consumption of goods and services.&nbsp; All over the world, different levels of income are distinguished and income tax exemption is given to the lowest which is known as a basic exemption. Welfare states also have a weighted system of taxes of the richest that ensures socio-economic equality. But even though there is a flat tax on salary and allowances, windfall profits including from real estate transactions are not taxed properly, leading to a consolidation of wealth among certain groups. Read also: <a href="https://www.nepalitimes.com/banner/nepals-great-income-divide">Nepal's great income divide</a> Experts have proposed wealth-based taxation to reduce the disparity between rich and poor. Economist Keshab Acharya says that the government should levy an inheritance tax on ancestral property to children as is done in the US, Japan and Europe. This encourages entrepreneurship and inspires the new generation to find creative ways to earn money. But the historical distribution of land in Nepal was largely unfair where families close to the ruling class were granted ownership exempt from tax. These assets have been handed down through generations and ownership of a large part of it is still limited to certain families.&nbsp; Historian Mahesh Chandra Regmi in his book Land Ownership in Nepal states that before 1951, more than one-third of the total arable land had been handed down intergenerationally in that manner. An inheritance tax will also reduce corruption because the mentality that wealth should be passed on to children will be weakened if such a tax is implemented. Meanwhile, land prices in Kathmandu skyrocketed thanks to the government. Since the state has spent on infrastructure that led to the rise in value of property, it should get a share of the profits “The government should get the benefit of increased property valuation in the form of taxes which will increase the spending purse for the welfare of the poor,” explains Khanal. Read also: <a href="https://www.nepalitimes.com/?p=21822&amp;preview=true" target="_blank">Some are more equal than others</a>, Anil Chitrakar

original

674x448

610x380

500x500

400x266

400x240

400x203

301x200

1250x600

1084x550

Nepal’s tax system widens rich-poor gap

<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

The sudden and massive flood on the Bhote Kosi early Tuesday morning washed away a strategic bridge on Nepal’s main border crossing with China for trade, tourists and pilgrims. Slurry from the nearly 10m high debris flow left 9 dead and 20 missing, 12 of them Nepalis and six Chinese nationals, and 150 others were rescued by helicopter.&nbsp; Four <a href="https://nepalitimes.com/banner/climate-smarter-himalayan-infrastructure">hydropower plants</a> Rasuwagadi, Trisuli III, Trisuli, &nbsp;Benighat and the Trisuli substation sustained heavy damage, knocking &nbsp;out 230MW of Nepal’s power supply – approximately 8% of the total. Over 100 cargo trucks and new electric vehicles parked at &nbsp;Timure Dry Port were swept away. Read also: <a href="https://nepalitimes.com/news/mapping-kangchenjunga-glacial-flood-risk">Mapping Kangchenjung glacial flood risk</a>, Gabe Allen Officials had initially thought &nbsp;the Bhote Kosi had flooded due to heavy rain in Tibet. However, the Department of Hydrology and Meteorology (DHM) and the National Disaster Risk Reduction and Management Authority (NDRRMA) now say a <a href="https://nepalitimes.com/here-now/living-below-nepal-s-melting-mountains">Glacial Lake Outburst Flood (GLOF)</a> is likely.&nbsp; NDRRMA spokesperson Suresh Sunar said it was too early to tell which one, but the flood was most likely the result of one of the glacial lakes in Tibet. Bhote Kosi begins on the north slope of the Ganesh Himal near the Nepal-China border, and its tributary Lende drains the catchment area north of Langtang. The slurry flood on Tuesday was on the Lende (map).&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250709110720_bbc99c5f3e3d61a3d340892e0273fee3605a8d334a2beb354126137bcf0c8d27.jpg" data-media-id="editor_3" data-image-id="20250709110720_bbc99c5f3e3d61a3d340892e0273fee3605a8d334a2beb354126137bcf0c8d27" data-rendition-name="original" width="629" height="759" loading="lazy" alt="Bhote Kosi flood map"> </figure>   <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250709110720_39e2f574ff8c12cecda2e5a999d2ba8a0310f599f6b2261dcad7dd43f94df2a1.jpg" data-media-id="editor_4" data-image-id="20250709110720_39e2f574ff8c12cecda2e5a999d2ba8a0310f599f6b2261dcad7dd43f94df2a1" data-rendition-name="original" width="997" height="613" loading="lazy" alt="Bhote Kosi flood map"> </figure>  “Preliminary study suggest that the disaster was not caused by rain in Tibet, but by a glacial lake burst, or another accident,” said Kamal Ram Joshi of the DHM. The level of water at a self-monitoring station in Timure in Rasuwa increased by 3.5m at 3:10AM on Tuesday morning while 13km downstream in Syabrubesi, the level rose by 3.65m at 3:30AM. The same station recorded 5.37m ten minutes later, after which it stopped giving a reading, possibly because the station was also washed away. The flood reached <a href="https://nepalitimes.com/here-now/neither-side-lost-both-sides-won">Betrawati</a> by 5AM, and some of the debris flow reached Mugling during Tuesday. DHM’s Flood Forecasting Division noted that there was no major precipitation in the Bhote Kosi watershed in Nepal and China in the 24 hours preceding the flood.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250708100724_313a684b65fc5317064779e47409a40f2bbce2c0c84db995e7f8fc6e1c142105.jpg" data-media-id="editor_6" data-image-id="20250708100724_313a684b65fc5317064779e47409a40f2bbce2c0c84db995e7f8fc6e1c142105" data-rendition-name="original" width="3600" height="1662" loading="lazy" alt="Bhotekosi flood"> <figcaption>The Miteri bridge before it was swept away by the flood in Bhotekosi on the Nepal-China border. Photo: SUBASH DHUNGANA / RSS</figcaption> </figure>   <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250708100732_ec43f13bae979f7b61bc0db939db4157dc93d3f0767ed527f564bd5c3d12be27.jpg" data-media-id="editor_7" data-image-id="20250708100732_ec43f13bae979f7b61bc0db939db4157dc93d3f0767ed527f564bd5c3d12be27" data-rendition-name="original" width="720" height="432" loading="lazy" alt="Bhotekosi flood NT 2"> <figcaption>The bridge after the flood.</figcaption> </figure>  On Wednesday, several remote-sensing experts using Copernicus &nbsp;satellite images pinpointed the cause of the flood to Purepu Cangbu where supraglacial ponds had merged in June to form a large lake which did not burst, but overflowed &nbsp;and found a channel through englacial conduits to the headwaters of the Lende. The river meets the Bhote Kosi at the Nepal-China checkpoint in Rasuwa.&nbsp; “Analysis of weather forecasts and satellite data shows the Tibet region did not receive enough rain to cause this scale of flooding,” explained Binod Pokharel, associate professor of hydrology and meteorology at Tribhuvan University. “The flood could have been caused by a GLOF."&nbsp; Two weeks ago, Chinese officials had reportedly warned the Rasuwa District Administration in Nepal to be on high alert for floods on rivers that originate in Tibet. It could be that Chinese scientists had observed the alarming<a href="https://nepalitimes.com/here-now/the-climate-crisis-is-a-water-crisis-in-the-himalaya"> expansion of glacial lakes</a> in the Lende and Bhote Kosi catchments. If that was the case, it is an example of the kind of trans-boundary forewarning that would be critical to save lives in future.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250708100736_1710142917b30d4f85b343ed52743554d723db918c708f0bade8a0491ba999b2.jpg" data-media-id="editor_9" data-image-id="20250708100736_1710142917b30d4f85b343ed52743554d723db918c708f0bade8a0491ba999b2" data-rendition-name="original" width="1001" height="500" loading="lazy" alt="Bhotekosi flood"> </figure>  However, Rasuwa’s Assistant Chief District Officer Dhruv Prasad Adhikari seems to have no knowledge of any warning from the Chinese side, either formally or informally. &nbsp; “The Chinese Embassy has said the cause of the flood is unknown that it will coordinate with Nepal to find the cause," Adhikari told us. Chinese Ambassador Chen Song and Prime Minister Oli visited the border on Tuesday (pictured). &nbsp; The sharing of real-time trans-boundary rainfall and river flow data would be crucial in early warning about the <a href="https://nepalitimes.com/news/mapping-kangchenjunga-glacial-flood-risk">risk and consequences of GLOFs</a> to reduce human and material loss. But Nepali officials say China has been reluctant to share weather-related information and data not just in this disaster, but in the past as well. “There is no mechanism or system in place for us to obtain hydrological and meteorological data of the Tibetan region,” said DHM Director General Joshi. The <a href="https://nepalitimes.com/here-now/for-destruction-ice-is-also-great-and-will-suffice">Himalaya is melting twice as fast as the rest of the world</a> due to a phenomenon called ‘elevation dependent warming’, and receding glaciers have led to an increasing number of transboundary GLOFs.&nbsp; According to <a href="https://nepalitimes.com/here-now/danger-nepal-s-glacial-lakes-are-filling-up">a 2018 ICIMOD study</a>, of the 47 of the most dangerous lakes that threaten Nepal, 25 are on glaciers in China, 21 in Nepal and one in India. Many of these glaciers are expanding rapidly due to global warming. One of the authors of the report, glacial lake expert Samjwal Bajracharya, says that the report was prepared based on data from 2015. But climate change has accelerated since then. Moreover, seismic activity has further destabilises the landscape, adding to <a href="https://nepalitimes.com/here-now/nepals-glacial-lakes-in-danger-of-bursting">GLOF risk</a>.&nbsp; “Considering the rapid rate of snowmelt and consequent increase in size of Himalayan glaciers, studies should be conducted every year, and a monitoring system should be set up on the glaciers,” says Bajracharya. “However, no studies have been conducted in the Himalaya in a decade, which has been our biggest weakness.” &nbsp;

Rasuwa flood likely a GLOF

Recent outrage in Sikkim over an Indian Army expedition climbing <a href="https://nepalitimes.com/here-now/saving-kangchenjunga">Kangchenjunga</a>, the world’s third-highest peak, has spiked attention to the need to balance mountaineering jobs with indigenous reverence for sacred landmarks. Kangchenjunga (8,586m) is not a peak as much as it is a mountain range with 16 peaks above 7,000m on the border between India and Nepal -- the word itself means ‘five treasures of the snows’ in Tibetan. Some of the highest prominences like Kangchenjunga West and Kangbachen are in Nepal, while the Main, Central and South Peaks are on the border. Climbing the peak from the Indian side has been banned since 2001 because the indigenous Lepcha community there regard the mountain as the abode of Dzoe-nga, the patron deity of Sikkim, which was an independent Himalayan Kingdom until it was annexed by India in 1975.&nbsp; Buddhists in Sikkim say their saint, Padmasambhava, recognised the mountain as a protective spirit. The state has declared the base of the mountain Kangchenjunga National Park, which covers an area one-third of Sikkim. ‘The act of scaling this sacred peak is not only a matter of serious concern but also a violation of both the prevailing legal provisions and the deeply held religious beliefs of the people of Sikkim,’ read a letter from Chief Minister Prem Singh Tamang (Golay) to Amit Shah, India’s Minister of Home Affairs and Cooperation.&nbsp; Tamang continued: ‘We further request Your Honour to take up the issue with the Government of Nepal to ensure that no future expeditions are permitted on the sacred mountain, in deference to the deeply held beliefs and cultural values of the people of Sikkim.’ Kangchenjunga was climbed for the first time exactly 70 years ago by a British team who told King Tashi Namgyal, the Choegyal of Sikkim, that they would not set foot on the summit. Since then, there have been about 532 successful climbs of the peaks and 52 have died while trying.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250628060616_5c268e08cf49f36b79ef9b31933fc2d9bf9a6f65414e7ca06dd028bf04e7ccc1.png" data-media-id="editor_1" data-image-id="20250628060616_5c268e08cf49f36b79ef9b31933fc2d9bf9a6f65414e7ca06dd028bf04e7ccc1" data-rendition-name="original" width="1782" height="1178" loading="lazy" alt="Kangchenjunga: too sacred to climb NT"> <figcaption>Indigenous communities in Sikkim held purification ceremonies following the Indian expedition to Kangchenjunga. Photo: THE VOICE OF SIKKIM / FACEBOOK</figcaption> </figure>  <a href="https://nepalitimes.com/here-now/peak-climbing-season-2025-s4abrxny">This spring climbing season</a> alone, there were 70 climbing permits for foreigners issued for Kangchenjunga by the Nepal government, and made it to the top while one French climber died.&nbsp; One of the expeditions this year was an Indian Army team led by Col Ranveer Jamwal, who has summited the highest peaks on all seven continents, and Mt Everest thrice. Jamwal’s team was on the final leg of a ‘<a href="https://economictimes.indiatimes.com/news/india/nimas-summits-mt-kangchenjunga-concludes-historic-har-shikhar-tiranga-mission-successfully/articleshow/121341315.cms?from=mdr">Har Shikhar Tiranga</a>’ (The Tricolour on Every Peak) mission to plant the Indian flag at the highest points of each of India’s 28 states. Kanchenjunga was the last peak they had left, and the hardest, but the expedition put five climbers on the summit. What seems to have incensed the Sikkimese is that while it has banned climbing the mountain from its side, it was an Indian military expedition that went to Nepal to climb the mountain. After news broke of the climb in May, the Sikkim Indigenous Lepcha Tribal Association asked people to observe purification ceremonies in temples across the state. Mayalmit Lepcha of the association acknowledged that the Sikkim government was also partly at fault: “I don’t think such an expedition could have gone forward without the state government being informed, so it could have done something to intervene. It shows weakness. What’s done is done, all we can do is carry out these sanctification ceremonies.”&nbsp; In 2000, one year before Sikkim’s ban, the state allowed an Austrian team to attempt Kanchenjunga’s northeast face for a fee of $20,000, on agreement that they would stop 10m before the summit. Despite this, there was outrage over the expedition on the grounds that it violated Indian laws regarding the defiling of religious sites and Sikkim’s rights to maintain its culture after merging with India. The Indian Army expedition was also seen to have circumvented Sikkim’s law and violated religious sensibilities by going through Nepal. While the team may have thought they were respecting Sikkim’s beliefs by finding a way to complete the mission, the people of Sikkim saw it as defilement.&nbsp; The somber mood of the Sikkim people at the ritual contrasts sharply with Jamwal’s sense of accomplishment. “Without a doubt, the most difficult summit of my life,” he told reporters after the climb. “It tested every ounce of our will.”&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250628060616_ccfe079c78dab788d19fe2080ee8a5d5dcb11de4157316f6d94e5964da097157.jpg" data-media-id="editor_4" data-image-id="20250628060616_ccfe079c78dab788d19fe2080ee8a5d5dcb11de4157316f6d94e5964da097157" data-rendition-name="original" width="787" height="377" loading="lazy" alt="Kangchenjunga: too sacred to climb NT"> <figcaption>Prayer flags along the Sikkim-Kangchenjunga trekking route. Photo: TREKKINGININDIA.COM</figcaption> </figure>  The <a href="https://nepalitimes.com/news/the-rise-and-fall-of-nims-purja">controversial Nepali-British mountaineer Nirmal Purja</a> was also on Kangchenjunga this spring the mountain, on a mission to summit all 14 8,000m peaks for a third time. He echoed Jamwal about the tough conditions: “The conditions above camp were extremely tough, with deep snow and challenging terrain—more crevasses than usual.” Nepal’s government has not said anything publicly, but it is unlikely that it will ban climbing on Kangchenjunga, since it is becoming popular with expeditions because of its technical challenges, and overcrowding on Mt Everest. Nepal does have bans in place for some of its mountains out of respect for local beliefs. <a href="https://nepalitimes.com/banner/to-open-machapuchre-for-mountaineering-or-not">Mt Machapuchre</a> (6,990m) the imposing pyramid that looms over Pokhara, for example, is seen as an icon of purity by the Gurung people and a symbol of Vishnu by the Hindu communities who live at its base. A strict climbing ban has been in place since 1957, when a British expedition led by Col Jimmy Roberts stopped 45m short of the summit – either because the last bit was too difficult or out of deference to local sentiments.&nbsp; Khumbila that stands above Namche Bazar is only 5,761m high, but like Kanchenjunga is considered the protector deity of the Sherpa people. Gauri Shankar on the Nepal-China border, called Chomo Tseringma by the local community, was off-limits between 1965 and 1979 due to its association with Lord Shiva and Gauri, his consort. Although expeditions are now allowed, there are not too many takers. In Tibet, climbing Mount Kailash is prohibited by the Chinese government because it revered by the Hindus, Buddhists and followers of the Bon faith. Even Mt Everest is regarded as sacred, and its Sherpa name is Chomolungma, Goddess Mother of the Earth.&nbsp; Economically, climbs on Kanchenjunga bring in decent revenue. This climbing season, the 41 permits, at $1,800 each, brought in $73,800. This is somewhat comparable to Makalu, Lhotse, and Annapurna I, but these numbers are dwarfed by the $4 million in <a href="https://nepalitimes.com/news/the-everest-industry">Everest permits</a>. Revenue from Kanchenjunga climbing permits is something Nepal could potentially forgo if necessary, but the expeditions also provide jobs to hundreds of high altitude guides, porters, base camp support staff and other logistical costs.&nbsp; As the third highest mountain in the world and the tallest in India, there will always be significant motivation to climb it from the Nepal side, especially as climbers are drawn by the technical climbing at high altitude.

Kangchenjunga: too sacred to climb?

The news headlines this week said: ‘The House of Representatives passed the Nepal Citizenship (Second Amendment) Bill that now makes <a href="https://nepalitimes.com/here-now/nepals-unequal-citizenship-law">acquiring citizenship through the mother</a> as equal as through the father.’&nbsp;
Could it really be true? There is genuine confusion or deliberate misunderstanding in the public about the Bill. Here is an explainer:
What is the Bill?
The Second Amendment to the Nepal Citizenship Act 2006 was tabled by the government on 11 March, 2024. The lengthy list of amendments underwent a detailed discussion within the State Affairs and Good Governance Committee of the HoR which presented a shortened list of agreed amendments.&nbsp;
The HoR passed this amended list of amendments on 28 June. While the original Bill contained eight amendment proposals, only three major amendments were presented by the Committee, and approved by the HoR.
Has it become law now?
No. It is yet to be passed by the National Assembly and endorsed by the President.
What exactly is contained in the amendments?&nbsp;
<ol>
 <li>Addition to Section 5 of the Act: ‘For citizenship applications, a father’s identity is deemed unknown if the applicant and their mother both provide a self-declaration stating that the father is unidentified, as per Section 5, even if his name is listed on the person’s birth registration, educational qualifications, or other certificates, yet his other identity is not available and is currently out of contact.’</li>
</ol>
This simply provides a definition to what the Act means by ‘father unidentified’ or ‘father untraceable’. Section 5 derives its authority from Article 11(5) of the Constitution that grants citizenship by descent to children whose mother is a Nepali citizen, but father is unidentified or untraceable.&nbsp;
The Nepal Citizenship Act 2006 and Regulation 2006 (both promulgated prior to the present 2015 Constitution) was amended in 2023 to incorporate the provisions of the new Constitution. In doing so, it included the procedural rule requiring both the applicant and their mother to sign a self-declaration form.
The result: a lot of people who claimed citizenship under this provision were still denied access, simply because their educational or other documents mentioned the name or address or some information about their father. The officials interpreted the presence of such information as father’s identity being known and assumed the applicants were hiding facts.
Read also: <a href="https://nepalitimes.com/opinion/no-state-for-women">No state for women</a>, Neha Gurung
The Supreme Court in one of such cases had clearly interpreted the meaning of ‘father unidentified’. In its overarching decision, the court stated the following:
‘It seems neither lawful nor just to compel an individual to accept someone as an identified father merely because their biological father’s name, surname, or address is claimed to be known or mentioned in educational or other documents. It would be just to consider the father’s identity as “unidentified”; if the individual has not received paternal affection or care, and the alleged father has never taken any responsibility, borne any obligation, or been physically present before the children, leading to a situation where the children haven’t even seen their face. Such an alleged biological father should remain “unidentified” for these children until they formally acknowledge them as their son or daughter, or, in their absence, their family provides reasonable proof to confirm the fact and identifies the relationship through a process acceptable to the children, or until such a confirmation becomes impossible.’
Based on this decision, multiple implementation challenges, and growing advocacy around this concern, the government included the above-mentioned addition in <a href="https://nepalitimes.com/here-now/nepal-s-citizenship-amendment-bill-explained">the Bill</a>.
Is it new?
The proposed addition is neither an introduction of the new right, nor does it provide anything beyond what the Constitution mandates. Since the Constitution itself uses the term ‘father untraceable or unidentified’, the most a legislation can do is to ensure that the constitutional provisions are interpreted and implemented in its true meaning. Therefore, the current Bill only serves to clarify the existing misinterpretation of the phrase ‘father unidentified’.
In a country where about 17% of the population are <a href="https://archive.nepalitimes.com/regular-columns/Comment/stateless-daughters-in-nepal,863">single mothers</a>, this clarification may provide certain relief for those whose fathers name was mentioned in the document and the father is now unidentified. However, the addition does not grant anything new.
The <a href="https://nepalitimes.com/banner/are-women-not-nepali-enough">gender discriminatory citizenship </a>where the citizenship or legal identity of a person is always dependent on one’s husband or father still remains.
Additionally, the current addition does not completely incorporate the Supreme Court’s decision which is broader and more comprehensive, requiring that the father be considered unidentified irrespective of the knowledge of the father’s name, surname and address, if the applicant/person has not felt the paternal affection or care, and the alleged father has never taken any responsibility, or borne any obligation or been physically present before the children.
The Bill only takes ‘father’s name’ into consideration. It does not recognize the mention of surname or address in the applicant’s certificates, nor the absence of emotional and physical presence, and responsibility in their life.
2. Addition to Section 18 of the Act:
i. Unless otherwise provided in this Act, a person dissatisfied with an order or decision made by an official under this Act may file a petition with the Secretary of the Ministry of Home Affairs within thirty-five days from the date of such order, through the District Administration Office or directly through Nepal Government.
ii. Upon receiving the report pursuant to sub-section (1), the Secretary of the Ministry of Home Affairs shall (must) issue their decision or order after obtaining the report from the official who issued the order or made the decision, within 30 days from the date of appeal, and such decision or order made by them shall be final.’
This provision is already present in the Act itself, and the Bill simply amends or adds the parts that are in bold letters. The positive part is that it makes the right to redress mandatory. Meaning, it not only ensures the right to appeal against the unsatisfactory decisions made by the local authorities, but also the right to receive the decision.
Earlier, it depended on the government's discretion to hear the appeal, but if this amendment is passed, it now becomes the State's obligation to ensure this as a due process of law.
This makes it easier for individuals denied citizenship, by the Chief District Office (CDO), to register an appeal in the higher office, which is the Home Ministry. However, in cases concerning a certain category of naturalised citizenship that falls under the jurisdiction of the Home Ministry, its decision becomes final and cannot be appealed.
This means that Nepal has two categories of naturalised citizenship. One that falls under the jurisdiction of CDO, such as naturalised citizenship to foreign women via marriage relationship. Another that falls under the jurisdiction of the Home Ministry, such as naturalised citizenship to persons born to Nepali mother and foreign father or foreigners who intend to acquire citizenship via stay requirement.&nbsp;
While the former can be appealed if the applicant is not satisfied with the decision of the official, the former, which is the government's decision, cannot be appealed.
3. Addition of Section 22(a) to the Act: ‘Shall provide a minor’s identity card to a person who is under 16 years of age, if either mother or father is a Nepali citizen.’
This provision can be considered as a positive extension of the child’s constitutional right. The Constitution of Nepal in Article 39 (1) states that ‘every child shall have the right to name and birth registration along with his or her identity’. The current Bill extends this right to a minor's ID card.
However, a minor ID card does not guarantee a citizenship certificate, which in Nepal, a person is eligible to apply only at the age of 16. This means: even though the child has the minor’s ID card and perhaps also a passport based on it, while applying for citizenship at the age of 16 or beyond, the person is bound by citizenship laws — which as we have seen is heavily dependent on the father's identity.
The conclusion?
The current amendment does not ensure any dramatic legal reform nor ensure a complete <a href="https://archive.nepalitimes.com/article/nation/The-right%20-to-have-rights,2656">gender equality in nationality laws</a>, simply because it technically and legally cannot.
When the Constitution itself uses gendered language such as ‘mother’, ‘father', ‘Nepali citizen man’, and ‘foreign citizen woman’, a legislation cannot override it. Nevertheless, recent amendments to the Act, including the first amendment, shows the government’s leniency towards gender equal citizenship laws.
Additionally, Article 49 of the Constitution also recognises equal lineage right of women, meaning that the family descent is legally recognised to be carried on by both genders. Hopefully in the nearest future, Nepal will carry this same principle to shape its citizenship law as well.&nbsp;
A transformative reform by ensuring gender equal nationality rights through constitutional amendment is still possible. Nepal, a member state to the CEDAW and CRC, is still in the list of 24 countries in the world that have gender unequal citizenship laws. &nbsp;It has the obligation as well as potentiality to become a pioneer in recognizing<a href="https://nepalitimes.com/editorial/quality-of-equality-for-women"> women’s equal rights </a>to confer citizenship to their children and spouse in par with men.
Neha Gurung is a human rights lawyer dedicated to advocating for equal citizenship rights, and co-founder of the Citizenship Affected People's Network. A Fulbright scholar, Gurung obtained LLM from the Washington College of Law.

Full equality vs status quo

In 2023, northern India suffered record-breaking heat. In 2024, it broke its own record. In 2025, the Indo-Gangetic plains and the Nepal Tarai suffered a prolonged pre-monsoon heat wave and humidity, forcing closure of schools and workplaces. This week, <a href="https://www.dw.com/en/europe-heat-wave-intensifies-as-fresh-warnings-issued/live-73108302">southern Europe is suffering the worst heat wave</a> since temperature records began. Football matches, tennis tournaments have been affected, and tourist sites have been closed off. Qatar has ordered a midday work curfew for Nepali and other migrant workers are the maximum temperature this week touched 45°C.&nbsp; Kathmandu Valley experienced its highest temperature in 25 years in May 2024 at 35.3°C. This year, the maximum temperature exceeded 30°C on many days — heat that till a decade ago would be considered unusual. Rains in early June also meant that towns in the mountains sweltered under high heat plus humidity.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250703090748_6975cfc2ad573f3a09ca301a299a9e92a420da7f1c5c90b8e4d061a2053dcd3e.jpg" data-media-id="editor_1" data-image-id="20250703090748_6975cfc2ad573f3a09ca301a299a9e92a420da7f1c5c90b8e4d061a2053dcd3e" data-rendition-name="original" width="1935" height="801" loading="lazy" alt="maximum average temperature in Kathmandu"> <figcaption>Source: DHM</figcaption> </figure>  Measuring just temperature does not give a true picture of how hot it is. When humidity is factored in, the heat index this summer has been much higher in northern India and Nepal. Also, the hotter the air temperature the higher the concentration of water vapour in it. “We feel it is getting hotter, and our statistics back that up,” says Shanti Kandel at the Department of Hydrology and Meteorology, which issued two heat wave warnings this year, compared to 11 last year. “We need more research to analyse how humidity is make this situation worse.” <a href="https://economictimes.indiatimes.com/news/india/india-faces-alarming-30-rise-in-moist-heat-stress-over-40-years-affecting-wide-swath-of-country-imd-study/articleshow/109376863.cms?from=mdr">A recent analysis</a> by the Indian Meteorological Department has found that heat stress in that country has increased by nearly 30% over the past 40 years. Similarly, India’s Council on Energy, Environment and Water (CEEW) noted that cities like Delhi, Chandigarh, Jaipur, and Lucknow have experienced a 6-9% rise in relative humidity in the last decade.&nbsp; It also states that <a href="https://www.reuters.com/sustainability/climate-energy/majority-indian-districts-face-high-heatwave-risk-study-shows-2025-05-20/#:~:text=%22About%2057%20per%20cent%20of,usual%20number%20of%20heatwave%20days.">60% of Indian districts</a>, home to three-quarters of the country’s 1.3 billion people face a high to very high risk from extreme heat, with rising night-time temperatures and humidity. The heat index is also called ‘<a href="https://nepalitimes.com/here-now/north-indian-heat-wave-hits-nepal">wet-bulb temperature</a>’ and is a measure of how hot the human body feels when humidity levels are also high — usually much hotter than the recorded temperature. For example, a wet-bulb temperature of 35°C is considered the maximum limit of heat and humidity that humans can handle, beyond which the body cannot cool by perspiration, leading to death. One indicator of increasing humidity is a rise in average minimum temperature, and Nepal recorded the highest figure since 1981 last year, with a peak of 15.8°C. Higher minimum temperature denotes warmer nights, which in turn is an indication of heat stress caused by increasing humidity, which in turn is a result of global warming. Aside from higher average temperatures worldwide this year, what makes heat and humidity more unbearable is that cities are always hotter than their surroundings. This is due to the <a href="https://nepalitimes.com/opinion/comment/preparing-for-kathmandu-s-heat-waves">urban heat island (UHI) effect</a> – for example the temperature inside Kathmandu’s Ring Road can be hotter by <a href="https://www.epa.gov/heatislands/what-are-heat-islands">up to 4°C during the daytime and by 1 to 3°C in the evening</a> compared to the outskirts. “Climate change is one reason for rising temperature, but there are other factors like increased heat in urban spaces due to concrete buildings and infrastructure, emissions from vehicles, industries, and home appliances,” explains urban planner Bhushan Tuladhar. He adds: “Much of this comes down to how we have developed our cities, not just our roads and buildings but also our water system, waste management, culture and customs as well as economy.” There is a feedback loop at work: as it gets hotter, more energy is used for fans, coolers, and air-conditioners which in turn add to the urban heat bubble. The way to reduce the UHI effect is to have more parks, tree-lined streets and water bodies to cool cities down.&nbsp; <a href="https://www.sciencedirect.com/science/article/abs/pii/S2212095525002093">A recent study published in the journal Urban Climate</a> by Nepali researchers at the University of Massachusetts, Tribhuvan University, University of Groningen, etc showed that even within Kathmandu, urban forests cooled neighbourhoods by as much as 1.2°C while ponds reduced the temperature by up to 0.85°C compared to nearby houses.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250703090748_e4de75dbdfb5fcfdeb0935eda364dc16b5dca8857ba335ab0f4586ebdc5093a9.jpg" data-media-id="editor_8" data-image-id="20250703090748_e4de75dbdfb5fcfdeb0935eda364dc16b5dca8857ba335ab0f4586ebdc5093a9" data-rendition-name="original" width="2580" height="1038" loading="lazy" alt="urban heat island in Kathmandu"> <figcaption>Source: URBAN CLIMATE et al.</figcaption> </figure>  ‘Our results demonstrate that blue-green spaces provide significant cooling benefits across the Kathmandu Valley, with distinct patterns by type, size, design, and urban context,’ concluded the paper, whose lead author is Saurav Bhattarai at Jackson State University in the United States. The old towns in Kathmandu Valley with traditional brick and tile architecture, ponds and trees managed hot summers better. Compact houses around a courtyard gave people just the right amount of sunlight, and use of clay mortar and bricks insulated houses in winter while cooling them in summer. There were open spaces, fertile land along the floodplains for farming, and brick pavements that allowed for seepage. “Our cities were planned taking nature into account,” says Sangeeta Singh, a professor of urban planning at the Institute of Engineering. “Kathmandu Valley is now built up, but we can still reintegrate blue-blue spaces into town planning with vertical gardening, urban forestry, using local material and harvesting rainwater.”&nbsp; Kathmandu’s municipalities have by-laws controlling building design and structure, but strict enforcement of land use and zoning are missing. Extreme heat disproportionately affects the urban poor who may not have access to fans or air-conditioners, exacerbating poverty.&nbsp; Cities in the plains have it even worse. As heat and humidity rise simultaneously, it could <a href="https://nepalitimes.com/banner/garmi-se-behal-chalo-nepal">reverse the current mass migration</a> of people from the mountains to the Tarai, where 53% of Nepal’s population lives. <a href="https://thedocs.worldbank.org/en/doc/92fbbbc6180238e18e7b239fad83e38a-0280032024/original/12-DHNT-Temperature-poverty-inequality-September-2024.pdf">A World Bank study</a> put the cost of a 1°C rise in temperature at 17.1% increase in poverty globally. Estimates put the total number of urban poor in developing countries exposed to the worst heat extremes at 26 million presently, this number is bound to grow to 215 million by mid-century, an over eight-fold increase. Meanwhile, 489,000 health-related deaths occur each year, 45% of them in Asia alone. “Heat has to be seen from a class perspective,” says Singh. “Those with money can afford gadgets and appliances to keep their homes and offices cool, but not day labourers or poor families living in cramped housing with poor ventilation.” Climate breakdown is going to widen the class divide in cities, as <a href="https://nepalitimes.com/banner/unthinkable-in-the-current-climate">summers become unliveable</a>. Says Singh: “We need policy intervention to address this class injustice. Our building by-laws and new town development must urgently integrate climate and energy efficiency elements.”

offshore-tax-havens

Nepal’s tax system widens rich-poor gap

Supreme Court weighs in on Ncell tax dispute

Rasuwa flood likely a GLOF

Kangchenjunga: too sacred to climb?

Full equality vs status quo

In the heat of the moment