NADA said, 'Budget to discourage entrepreneurs who want to produce electric vehicles in Nepal'
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Nepal Chamber of Commerce has stated that although the budget for the next financial year is realistic and moderate, implementation is challenging. According to the chamber, the government's goal of making the economy run after coming out of the economic recession is challenging.
The Chamber issued a statement on Wednesday and said that the next financial year will be declared as the year of economic reform and the creation of a commission for the second phase of economic reform is positive. The target of revenue collection of Rs 12 trillion 60 billion 30 crore seems challenging in the current economic situation. The target of raising domestic debt of about 30 percent of the total budget seems to have a negative impact on the economy in the long run due to the lack of liquidity in the market, the statement said.
The Chamber has said that the focus of the budget on agriculture, tourism, energy, information technology and productive sectors is positive. Considering the upcoming financial year as the departure year of the information technology decade, the Chamber also mentioned that the goals of the general program of fellowship and internship for the IT workforce, including the construction of a state-of-the-art IT-hub, are positive. The chamber said positively that the period from 2081 to 2091 will be declared as the Decade of Agricultural Investment to increase production and productivity by commercializing and modernizing agriculture, increasing investment in agriculture from government, private, cooperative and development partners.
The chamber has also taken positively the coming of programs to bring in 1.6 million tourists in the next financial year, to increase domestic production to replace imports and increase exports, and to link production with employment. The Chamber says that mentioning in the budget the subject of self-employment by promoting entrepreneurship through the knowledge, skill capital and technology of citizens who have returned from foreign employment is a good aspect of the budget.
NADA Automobiles Association of Nepal has said that the auto sector will be seriously affected by the budget. NADA has concluded that the increased tax, road duty and other arrangements on electric vehicles will discourage even the entrepreneurs who want to produce electric vehicles in Nepal. We have been requesting the government to formulate a definite and long-term policy regarding electric vehicles and its policy facilities. And, it has been making a policy decision to give green energy a high priority. But regarding electric vehicles, it has made several amendments," said the statement issued by NADA General Secretary Surendra Kumar Upreti, "This shows the gap between the government's words and actions. It also shows that there is no clarity in the government's intention to promote and promote electric vehicles. It seems that the business of electric vehicles will be affected by the policy of sometimes reducing and sometimes increasing the facilities.'
The budget has provided for a 5 percent road construction fee on electric vehicles. Similarly, NADA also alleged that the current budget is trying to discourage the import of goods through LC. The current budget has made a new provision of 1 percent green tax on lubricating oil and 0.5 percent on base oil. 10 percent excise duty has been imposed on imported hydraulic oil and brake oil. NADA believes that this will not only make the construction business more expensive but also increase its unauthorized import from the border area. NADA demands that such fees be removed.
Similarly, the Gas Sellers Federation of Nepal also stated that the budget did not address the issue of LP gas for cooking inflammable materials. It should have been mentioned in the budget to organize the sale and distribution of combustible gas and raise public awareness about its use, but it did not happen. It was not seen that the budget should play a role in the extraction of gas and petroleum products in Nepal," said Federation President Chandra Thapa.
