Cabinet Decisions September 2026: Capital Gains Tax, Ambassadors, Civil Service Bill

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Nepal’s Council of Ministers took several important decisions in September 2026. They cover taxation, diplomacy, the civil service and foreign aid, all common topics in Lok Sewa exams. Here is a date-wise summary.

16 September 2026: Six Decisions

  • Digital governance rules: The cabinet approved the Government Decision Process Simplification and Digitalisation Rules, 2026 to make government decisions faster and paperless.
  • Revolving relief fund: A procedure for a revolving relief fund was approved.
  • Capital gains tax on listed shares: The advance tax withheld when selling listed shares was revised:
    Holding periodTax rate
    More than 365 days3.5%
    365 days or less5%
  • Compensation in Saudi Arabia: The cabinet granted power of attorney to a Saudi lawyer to pursue compensation for Nepali workers who died or were injured in Saudi Arabia.
  • Judicial promotions: Several judicial officers were promoted.

18 September 2026: Ambassadors and the Weather Department

  • The cabinet recommended 13 people as ambassadors to 13 countries. Their names were sent to Parliament’s hearing process.
  • Update (14 October 2026): Parliament’s Parliamentary Hearing Committee approved 10 of the 13 nominees. It rejected the nominees for Saudi Arabia and Malaysia and put the Japan nomination on hold.
  • The Department of Hydrology and Meteorology was moved under the Ministry of Energy, Water Resources and Irrigation.

Remember: Ambassador nominees must pass a hearing in Parliament’s Parliamentary Hearing Committee before they are appointed.

29 September 2026: Civil Service Bill and US Grant

  • The cabinet approved sending the Federal Civil Service Bill to Parliament. This law is very important for anyone joining the civil service, because it will govern recruitment, promotion and service conditions in the federal structure.
  • The cabinet accepted a US$20.7 million grant from the United States for health sector reforms.

Other Decisions

  • Relief, compensation and full medical treatment for people injured or killed during demonstrations in Sunsari and Siraha.
  • New leadership appointed at the Investment Board Nepal and the University Grants Commission.

Practice MCQs

  1. Under the September 2026 decision, what is the capital gains tax rate on listed shares held for more than 365 days?
    a) 2.5% b) 3.5% c) 5% d) 7.5%
    Answer: b) 3.5%
  2. Which ministry is the Department of Hydrology and Meteorology now under?
    a) Ministry of Forests and Environment b) Ministry of Home Affairs c) Ministry of Energy, Water Resources and Irrigation d) Ministry of Agriculture
    Answer: c) Ministry of Energy, Water Resources and Irrigation
  3. How many ambassadors did the cabinet recommend on 18 September 2026?
    a) 9 b) 11 c) 13 d) 15
    Answer: c) 13
  4. Which country gave a US$20.7 million grant for Nepal’s health sector reform?
    a) Japan b) United States c) United Kingdom d) Germany
    Answer: b) United States
  5. Which bill did the cabinet approve sending to Parliament on 29 September 2026?
    a) School Education Bill b) Federal Civil Service Bill c) Media Council Bill d) Police Bill
    Answer: b) Federal Civil Service Bill

Related Notes

Sources: ShareSansar: new 3.5% and 5% tax rates; The Annapurna Express: 13 ambassador nominees; Kantipur: hearing approves 10 of 13; Kantipur: Federal Civil Service Bill to Parliament. Last updated: 20 October 2026.

Why this matters for Lok Sewa

  • Cabinet decisions on tax and the civil service are useful for economy and public administration MCQs.
  • The digitalisation rules connect with e-governance questions.

Quick practice questions

  1. What is the capital gains tax rate on listed shares held for more than 365 days? Answer: 3.5%.
  2. And for 365 days or less? Answer: 5%.

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