NADA Calls The Budget A Mixed Bag

The government's policy of levying only 1 percent customs duty on spare parts or raw materials for the manufacture of electric rickshaws, motorcycles and scooters, including the vehicle assembling industry, with the objective of giving high priority to industry establishment and production as the main means of import substitution, is highly commendable, says NADA Automobiles Association of Nepal (NADA).

NADA has also welcomed the government's decision of considering electric vehicles up to 100 kW,  sub-1500 cc cars and sub- 200cc motorcycles as a necessity than an option. Similarly, the organization is also positive about the construction of a modern exhibition hall in the country.

However, NADA wants the government to reconsider its decision to increase the excise duty and customs duty on electric vehicles with more than 100 kW capacity and motorcycles above 200cc. This puts at risk the future of business houses that are involved in the trading of such vehicles.

The budget for the upcoming fiscal year has also made it mandatory to have a PAN card if someone wants to purchase a vehicle.  It does not seem fair to make such an arrangement only for those who want to buy a vehicle, says NADA.