NADA Advocates Essential Policies to Revitalize Nepal's Automobile Sector in Discussion with Finance Minister

A delegation led by the President of NADA Automobiles Association of Nepal (NADA), Mr. Karan Chaudhary, met with the Honorable Finance Minister Prakash Sharan Mahat to discuss various issues related to the Nepalese automobile sector.During the meeting and discussions, President Chaudhary expressed concerns about the sluggishness in Nepal's automobile business and urged the implementation of necessary policies to make the sector more dynamic. The points discussed during the meeting can be summarized as follows:Limit Indian Truck operations to 24 Hours within 16 km radius: Due to the continuous entry of Indian trucks into Nepal for 72 hours, which is causing a decline in the business of Nepali vehicle traders, it is suggested to implement a provision where they are given a 24-hour time limit and allowed to operate within a maximum distance of 16 km from the customs point.

Control of unauthorized imports: Due to open borders, there has been unauthorized import of tire and automobile spare parts, affecting the legitimate business. Strengthen border control to curb illegal imports.

Adjustment of loan standards: Review and revise the current standards for loan facilities provided by Nepal Rastra Bank to businesses, especially in the automobile sector, considering the economic conditions and challenges.

Enhanced financing for vehicles: Increase the Loan to Value Ratio from 50% to 75% for vehicles running on petrol and diesel, to boost the automobile business.Protection measures for dealers: Establish mechanisms to support authorized dealers and combat the theft and illicit trade of spare parts in the market.Improved valuation system: Address the complexities in the valuation of goods for business and ensure that the valuation system aligns with the actual market and business values.Clear tax system: Ensure transparency and clarity in the tax system to aid businesses. Establish Business Help Desks in every tax office to assist entrepreneurs with tax-related matters.Crackdown on tax evasion: Implement measures to deter tax evasion, especially by individuals involved in formal businesses, and establish an Industrial Help Desk in each tax office for industrial assistance.Social responsibility accounting: Develop a system to include social responsibility expenses in the annual income statement for businesses, promoting transparency and accountability.Stable excise tax rates: Maintain stability in excise tax rates to boost confidence among business owners and provide them with a secure environment.

Standardization of Parts: Enforce using the NS mark for domestically produced automobile parts, lubricants, and tires, ensuring quality standards.

Incentives for local production: Provide incentives for establishing automobile assembly plants, lubricant, and tire manufacturing industries in Nepal to replace imports and create employment opportunities.

Establishment of an International Exhibition Center: Build an international-level exhibition center in the capital to promote trade and economic relations between Nepal and India.

Special Economic Zone: Establish an Indian Economic Zone in Nepal to attract Indian industries, facilitating easy trade and investment.Support for the lubricants industry: Allow the import of high-quality lubricants only to protect the domestic lubricants industry.

The Finance Minister expressed interest in the presented suggestions and assured the delegation that the government would take necessary steps to address the concerns and implement relevant policies for the growth and development of the automobile sector in Nepal.

The meeting concluded with the presence of senior officials from NADA, including Vice President Akash Golchha, Institutional Vice President Pushkar Ojha, Vice President Rajan Babu Shrestha, Secretary Vikram Singhania, Treasurer Milan Babu Mall, Joint Treasurer Pankaj Agrawal, and Association Secretary Surendra Pradhan.