December 9: Finance Minister Janardan Sharma has said that the contribution of the automobile sector in revenue should be reduced below 25 percent.

Inaugurating the 45th Annual General Meeting of NADA on Wednesday, he pledged to reduce the direct taxes imposed on automobiles below 25 percent but to increase the overall contribution to 50 percent by imposing indirect taxes.

Minister Sharma said that emphasis should be laid on vehicle production in Nepal rather than importing them. "I am less literate on economics, but I have heard people who do not know economics run the finance ministry. However, I know the way to make this country self-reliant," he said.

Stating that the people will not get benefits without the country becoming prosperous and self-reliant, he said that no changes will occur without moving the business sector forward. "Imports cannot be banned, not even by the means of various laws, but imports can be reduced by making domestic production more competitive," he said.

He said that the government will provide subsidies on electricity and also allocate land if investors are willing to set up industries to produce vehicles within the country.

Stating that the government will address the issue of instable policy, Minister Sharma said that the focus will now be on building electric charging stations. "All petrol pumps have to be converted into electric charging stations,” he added.

On the occasion, Senior Vice President of the Federation of Nepalese Chambers of Commerce and Industry Chandra Prasad Dhakal urged the government to update the traditional policies on time for the rapid economic development of the country.

"It's not just about the automobile sector. It is in the interest of all parties to change the old policies by discussing with the stakeholders and incorporating the suggestions of the private sector as a whole,” he said, adding that the state should move ahead.

He thanked the government for providing additional facilities to the assembling plants and said, "Batteries used in electric vehicles can be produced in Nepal. Such industries should be encouraged."

NADA Vice President Karan Chaudhary urged the government to help the auto dealers. Chaudhary said that although the establishment of the auto industry was encouraging, the state is not able to put in all the efforts immediately. 

The NADA general assembly will elect a new executive committee. A still competition is expected between the panels led by Karan Chaudhary and Dhruva Thapa as there is no consensus for a new leadership.