Majority of transport bodies yet to get registered at OCR

Kathmandu, June 21

Altogether 308 transport bodies (associations and committees) have registered themselves at the Department of Transport Management (DoTM) after completing their company registration process in the last two months.

Following the decision of the government to scrap all transport bodies on April 11 intending to bring their businesses under the company registration process, transporters are gradually registering their committees and associations at the Office of Company Registrar (OCR).

As per the earlier decision of the government, DoTM will not renew registration of existing transport bodies under the current format.

Despite this plan of the government, a majority of transport bodies including some renowned transport associations like Narayani Transporters’ Association, Araniko Transport Association and Prithivi Highway Bus Entrepreneurs’ Association, among others are yet to start company registration process.

This shows that transport entrepreneurs are still hopeful that the government might reverse its earlier decision and allow transport bodies
to operate by registering themselves at the district administration offices.

In fact, the recent moves made by the Ministry of Physical Infrastructure and Transport (MoPIT), including the decision to transfer the DoTM leadership that has slowed down the pace of government’s campaign to end transportation syndicate seems to have boosted the morale of transport entrepreneurs.

Moreover, transport entrepreneurs are learned to have been pressurising MoPIT and officials of the Ministry of Home Affairs to support the syndicate system.

Tulsiram Aryal, spokesperson for DoTM, said that though company registration at OCR is mandatory for transport bodies to renew their registration, a number of transport association are yet to register themselves at OCR.

However, Aryal clarified that DoTM will not renew the registration of any transport association/committee unless they complete the set legal provisions. Moreover, he also informed that DoTM will not issue vehicle route permit to vehicles of those transport bodies that are not registered at OCR.

Making transport bodies operate as a company will not only end the syndicate practices in the transportation industry, but will directly increase revenue worth billions of rupees for the government.

There are hundreds of transport bodies registered as non-profit associations at the district administration offices. However, though these transport bodies are functioning as commercial organisations and making huge profits, they are beyond the income tax net of the government.

Bringing these transport bodies under OCR will bring the public transportation sector, which has transactions worth billions of rupees annually, under the income tax net of the government.