Budget 2023/24: NADA Submits 7-point Policy Recommendation On EVs To FM

NADA Automobiles Association of Nepal (NADA), the governing body of automobile dealers in Nepal, has submitted a 7-point recommendation to the Ministry of Finance regarding electric vehicles for the upcoming budget, while also seeking a reduction in customs duty on parts used in electric vehicles.

The automobile body has also suggested Finance Minister Prakash Sharan Mahat to ease the process of obtaining necessary compliances/approvals from government departments regarding the setup of necessary infrastructures.

The suggestions provided by NADA are as follows:1. The current subsidies provided by the government for electric vehicles should be continued. Likewise, customs duty on various equipment used in electric vehicles should also be reduced accordingly.

 2. The government should increase the number of organized and safe charging stations in the necessary places. The government should develop it as a separate business model and work together with the private sector on building such models.

3. Nepal Electricity Authority (NEA) should coordinate with the government to simplify the process of establishing charging stations by EV importers.

4. As the charging tariff rate set by Nepal Electricity Authority is high, it should be reduced accordingly. And, there should be different charging tariffs for cities and highways.

5. EV importers should be provided with an opportunity to select 200 fuel stations across the country to establish charging stations. There should be an arrangement with NEA to invest 50% in these stations. The Ministry of Finance should facilitate this initiative with the concerned stakeholders.

6. The government should make the necessary policy related to battery disposal, as the import of low-quality electric vehicles especially motorcycles, will create a problem in the near future.

7. A certain quality standard should be set for battery disposal and EV repair workshops.