KATHMANDU, June 7: Lawmakers blamed Finance Minister Prakash Sharan Mahat and related officials of the Ministry of Finance (MoF) for leaking out the tax related information to businesspersons prior to the day of budget announcement.
The budget has increased customs duty on electric vehicles (EVs) in the capacity of 50-100 kilowatts from 10 percent to 15 percent. Similarly, additional 10 percent excise duty has also been slapped for the imported EVs in the segment.
Electricity leakage has come down to 7.49 percent
Based on this leaked out information, the entrepreneurs imported over 1,100 units of the entry level EVs in just around one month previous to the budget announcement date of May 29, making the government face revenue loss of around Rs 900 million. Vishal Group and Pashupati Murarka, former president of the Federation of Nepalese Chambers of Commerce and Industry, among others, are the importers of the 50-100 kilowatt EVs.
Similarly, the government has lowered the rates of customs duty and excise duty each from 30 percent to 20 percent on the imported EVs in capacity of 100-200 kilowatts. The reduction in tax rates on imported luxury cars is just to ensure undue benefits to selected importers, said lawmakers.
