The Nepal Weekly 
May 16, 2023
Nepal Automobile Dealers Association (NADA) has asked the Government to continue the existing tax rule on import of electric vehicles (EVs) to continue. NADA demands that the policy should exist for years rather than fluctuate every single year.
In the policy recommendations submitted to the Ministry of Finance to incorporate in the coming budget of fiscal year–2080/81, NADA has also requested that the customs tax on certain components used in EVs should be reduced.
The government should construct safe and sound EV charging stations in strategic locations, promote them on the basis of different business modality, and create space to the private sector to engage in it, NADA had recommended.
Furthermore, EV importers if choose 200 existing fuel stations and intend to build EV charging stations there, Nepal Electricity Authority should invest 50% of the cost. Ministry of Finance should act as a facilitator and coordinator to this effect, according to NADA recommendations. As the electricity tariff for EV charging is costlier at present, as such the tariff should be lowered.
In the changed context, a legal provision of re-export for used EV batteries has been a need as the offloaded batteries should sent back to EV manufacturer or as per the international practice.
Similarly, NADA recommendations includes request to remove VAT on tractors which are considered as agriculture machine and an important devise but fall under vehicle category.
The association is the exclusive national level organisation that comprises private companies who deal automobile, spare parts and accessories by manufacturing, importing, distributing and providing after sales service in Nepal. NADA was established in 1975 with vision to support the entire automotive industry of Nepal and contribute to nation develop.
