Govt plans to tighten credit to discourage the import of fuel-based private vehicles

Published On: May 13, 2023 12:00 PM NPT By: Republica  | @RepublicaNepal

KATHMANDU, May 13:  The government has planned to reduce the import of fuel vehicles to increase the number of electric vehicles in Nepal. The government is set to take a strategy to tighten fuel private vehicle loans.

While approving the Action Plan 2079 BS on trade deficit reduction, the Council of Ministers has adopted a policy of discouraging the import of vehicles with fuel engines within six months.

The government claims that the increase in the use of electric vehicles will contribute to the national economy by saving money spent on fuel imports. According to the action plan approved by the Council of Ministers, vehicle loans will be reviewed within six months to reduce the import of private vehicles with fuel engines and will be addressed through Nepal Rastra Bank.

The government estimates that the implementation of such a system within six months will result in a decrease in the import of private vehicles running on petroleum products and an increase in the use of electric vehicles.

It is mentioned in the action plan to adopt a policy of facilitating the use of electric vehicles instead of fuel vehicles and its importation.

The Action Plan states, "In order to discourage the import of private vehicles that run on petroleum fuel, the central bank will take a policy to review the vehicle loans given to such vehicles to be implemented within six months." As an alternative, the banking facility provided for the purchase of electric vehicles will be made simple and easy.

Similarly, the Action Plan also states that tax concessions and concessional loans will be provided to increase the use of electric vehicles.

Likewise, plans such as making electric vehicle charging stations, exporting electricity, replacing petrol and diesel-powered equipment used in agriculture with electric ones, encouraging the use of electric systems in brick and cement industries that use coal, etc. are also being prepared for implementation soon.

The government had prepared the National Action Plan 2075 BS on reduction of trade deficit four years ago. The government decided on NTIS in the year 2073 BS by prioritizing the export of goods such as cardamom, ginger, medicinal herbs, cloth, leather, shoes, carpets, pashmina, and information technology products.

The strategy listed electricity, coffee, fruits, vegetables, honey, noodles, woolen products and jewelry as potential export items.


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