Finance Minister Khanal Rules Out Scrapping Provinces, Clarifies on Currency Ban and GST

Finance Minister Rameshwar Khanal dismissed speculation about scrapping provinces, ruled out currency ban talks, and said GST effects are under review.

Morang — Finance Minister Rameshwar Khanal, who also oversees the Ministry of Federal Affairs and General Administration, has dismissed speculation about dissolving Nepal’s provincial structure.

Speaking to reporters at Biratnagar Airport, Khanal said the government operates strictly under the constitution and has no plan to eliminate provinces. He stressed that recent rumors about scrapping federalism are baseless.

No Talks on Currency Ban

Answering a media query, the minister confirmed that there has been no discussion on banning 500-rupee and 1,000-rupee banknotes in Nepal. On India’s Goods and Services Tax (GST), Khanal said the government is studying its effects. He added that if the tax is found to harm Nepali industries and enterprises, corrective steps will be taken to safeguard businesses.