Kathmandu, Jan. 7: Finance Minister Dr. Prakash Sharan Mahat has said that the tax discount given on electric vehicles should also be transferred to the consumers.
Addressing the 47th Annual General Meeting of NADA Automobiles Association of Nepal on Friday evening, Finance Minister Mahat noted that the government has given tax concession for the promotion of EVs, so the concession should be transferred to the consumers.
“The government has given concessions to the people as well, not only to businessmen. It seems that a situation has been created where the businessmen do not give cars to customers at the same exemption rate.”
Minister Mahat said that there is a lot of loss in revenue now owing to providing concessions on customs for the import of electric vehicles. He, however, said that the growing use of electric vehicles is also reducing the import of petroleum products and supporting efforts to make the environment clean and reduce trade deficit.
Stating that the government will emphasise on expansion of charging infrastructure for electric vehicles, Minister Mahat urged NADA itself to invest in charging infrastructure.
He said that the automobile sector was expanding and assembly factories were opening and parts and other materials were being made, which is a matter of happiness. Finance Minister Dr. Mahat said that the problems seen in the country’s economy are gradually going away.
Stating that the country’s economy has gradually returned to its own track compared to the past, he said that there is a need for starting positive discourse to make the economy more viable and stronger by enhancing public confidence.
On the occasion, President of Federation of Nepalese Chambers of Commerce and Industry Chandra Dhakal said that disputes of dedicated and trunk line arrears should be solved at the earliest.
“If our existing authorities, including the Electricity Authority, Electricity Regulatory Commission, Ministry of Energy and any other agencies are ready to solve this problem, let’s solve it. If not, let’s solve it by forming a judicial commission,” he said.
Dhakal said that there would be adverse impact on economy and employment creation if the dispute between the NEA and businesses lingered longer.
Stating that the businessmen are in a very difficult situation, he said that as the indicators of the economy are improving lately the government should create a positive situation.
President of Confederation of Nepalese Industries (CNI) Rajesh Kumar Agrawal stressed on the need for creating a business-friendly environment by amending the existing policies and laws related to business and investment. President of Nepal Chambers of Commerce Rajendra Malla suggested that the government should expand the tax net instead of increasing tax rates to increase revenue.
Outgoing President of NADA Automobile Association of Nepal Dhruba Thapa said that businessmen are discouraged by the rumours of tax rates changes on electric vehicles in next year’s budget.
He urged the government to maintain stability in personal taxes and not to increase taxes by giving high priority to electric vehicles.
He said that when the tax on electric vehicles is increased frequently in Nepal, there is a situation where investment in the ecosystem is discouraged.
Stating that the government has treated vehicles as a luxury but now it has become essential, he said that the government should reduce customs on vehicles.
He said that the government should not look at the automobile sector as an unproductive sector, saying that the transport sector has contributed greatly to the collection of customs revenue and has been providing employment to tens of thousands of people directly and indirectly.
“In the automobile sector, there is more than Rs. 100 billion investment. Therefore, it is necessary for the government to arrange a stable policy and facilitate for its expansion,” he said.
Karan Chaudhary has been elected unopposed as the president of NADA Automobiles Association of Nepal.
The 47th Annual General Meeting of NADA Automobiles Association of Nepal has elected a new executive committee under Chaudhary’s chairmanship.
Source: The Rising Nepal
