In a dialogue held in Janakpurdham between the Madhesh Provincial Government and representatives of NADA, auto sector entrepreneurs have demanded provincial support for a stable tax policy, expansion of electric vehicle infrastructure, and development of skilled manpower.
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A policy dialogue was held in Janakpurdham on Wednesday between the NADA Automobiles Association of Nepal and the Madhesh Province Government on policy reforms and investment climate in the automotive sector.
The meeting was organized with the aim of engaging in dialogue with the business community on the special initiative of the newly appointed Finance Minister of Madhesh Province, Yubaraj Bhattarai.
A delegation of intellectuals and businessmen led by NADA President Surendra Kumar Upreti presented the automotive sector as an integral part of the provincial structure. During the discussion, NADA representatives presented data on the contribution of the auto sector to the country's economy and employment. It is said that this sector contributes more than 20 percent to the total government revenue. NADA has stated that this sector has provided 100,000 direct and 100,000 indirect jobs across the country.
In the meeting, NADA has put forward three priorities with a clear framework for the development of sustainable automobile business and electric vehicle ecosystem in Madhesh Province. Chairman Upreti informed that the priorities that need to be put before the minister include a clear and stable policy on the structure of registration fee and value added tax for at least a few years, a joint task force should be formed to develop automobile dealerships in secondary cities as electric vehicle charging centers, and provincial support for retraining service technicians to make them new technology-friendly in view of the increasing use of electric vehicles.
‘We are not asking for tax exemptions, but clarity. We are asking for policy clarity,’ said Chairman Upreti, ‘Only dealers who know the cost structure of the next two years can confidently invest in rural service centers and appoint new technicians. However, dealers who are uncertain about the tax liability for the next month cannot commit to business growth.’ To remove policy uncertainty, NADA has also proposed to establish a regular communication channel with the Ministry of Finance.
During the discussion, Madhesh Province Finance Minister Bhattarai said that the role of the private sector will be important in the economic development of the province. "I urge the NADA delegation to strengthen the investment environment in Madhesh Province and increase private sector investment," he said. "The Madhesh Province government will provide necessary support for this." Madhesh Province Finance Minister Bhattarai, Madhesh Province Labor and Transport Minister Sharada Devi Thapa, Revenue Officer Jayakumar Raut, and NADA President Surendra Kumar Upreti, outgoing President Karan Chaudhary, Special Advisor Rajan Babu Shrestha, and General Secretary Milan Babu Malla participated in the discussion.
