EV entrepreneurs cheer customs duty reduction

Entrepreneurs involved in Electric Vehicles (EVs) in Nepal have welcomed the government’s decision to slash customs duty on Electric Vehicles (EVs) through the budget for Fiscal Year 2016/17. Unveiling the government’s budget at the parliament on Saturday, Finance Minister Bishnu Prasad Paudel said that customs duty on EVs meant to be used as public transport had been reduced to 1 percent while those meant to be used as private vehicles would have to pay 10 percent as customs duty. Previously, the government had been imposing 40 percent customs duty on four-wheeler EVs and 15 percent on two-wheeler EVs. “This reduction in customs duty on EVs will promote the use of zero-emission vehicles as such a large cut will bring down EVs’ prices in the domestic market,” Umesh Raj Shrestha, the chairman of Electric Vehicle Association of Nepal (EVAN), said. Shrestha says the price of EVs could come down by almost 20 percent following the customs duty reduction. “EVs grabbed people’s attention this year following the acute fuel shortage. People’s attraction will further increase following lowering of their prices,” Shrestha adds. Surendra Manandhar, the managing director of Astha Automobiles, says that the new duty will help increase people’s access to electric vehicles. “We have always been lobbying with the government for reduction in customs duty. We have been finally addressed,” Manandhar says. Entrepreneurs, however, say that the government should also relax customs and other duties being levied on batteries and other technology used in EVs. “As Nepal’s EV industry is slowly growing, tax facility to entrepreneurs on batteries and other things like spare parts used in EVs will drastically take the EV industry of Nepal to newer heights,” Shrestha of EVAN says. According to data from EVAN, almost 18,000 electric vehicles currently run in Nepal’s roads -- 14,000 electric rickshaws, 3,000 two-wheelers, 350 electric cars and 714 safa tempos (electric auto-rickshaws). Source: Republica