Import Of Electric Vehicles Falls By 88 Percent
January 1, 2021 | Investopaper
The imports of electric vehicles have declined by 88 percent in the first five months of the current fiscal year. According to the data released by the Customs Department, only 37 electric vehicles have been imported in the first five months of the current fiscal year, which is a decrease of 88.25 percent compared to the previous year. In the corresponding period of the previous fiscal year 315 electric vehicles were imported to Nepal.
Despite the government’s policy of replacing petroleum-powered vehicles with electric vehicles, the imports of such vehicles has fallen. The government had taken a policy of encouraging electric vehicles to reduce pollution in the Kathmandu Valley two years ago. The target was to increase the share of electric vehicles to 20 percent by 2020.
However, the then Finance Minister Yubaraj Khatiwada increased the tax on electric vehicles by up to 70 percent in the current budget. Both the import and sale of electric vehicles have been affected by the tax hike. Not only has the government increased taxes, but the government has not been flexible in urging businessmen to set standards for the purchase of electric vehicles and charging stations.
The government had decided in the second week of Ashwin to cut the tax hike on electric vehicles. It decided to give 30 to 80 percent rebate on the increased tax with the expulsion of Finance Minister Khatiwada after widespread protests against the tax hike on electric vehicles.
