June 1: The auto entrepreneurs have said that the government’s unstable policy has hindered  the promotion and business of electric vehicles in Nepal.  

In a press release issued on Wednesday, NADA Nepal Automobiles Association of Nepal has criticized the government for making changes on tax and excise duty on electric vehicles through the budget speech in the parliament by Finance Minister Dr Prakash Sharan Mahat.

“The decision to hike tax and excise duty on the electric vehicles contradicts government’s policy of encouraging electric vehicles,” the statement reads.  "The association has been calling the government for a long time to establish a stable and long-term policy with various incentives and provisions for electric vehicles," the press release states.

"However, the government’s frequent amendments to the tax policy in such vehicles without ground shows the inconsistency between the government's words and actions for the promotion of electric vehicles,” according to NADA.

Furthermore, the Auto Association has mentioned that the fluctuating policies and uncertainties in granting discounts and facilities by the government on the manufacturing of the electric vehicles within the country severely affect the electric vehicle industry.  

Unstable and inconsistent policies have deterred auto entrepreneurs willing to manufacture electric vehicles within Nepal, NADA says.  The government has also increased the customs tariff on public electric buses, thereby discouraging the use of electric buses in public transportation.

Auto Association has expressed dissatisfaction with the government's new provision for battery-importing companies to self-manage batteries after sale and make public battery management plans on an annual basis. The Auto Association has demanded the removal of such provision, which is neither practical nor feasible.