Government to promote establishment of assembly plants
KATHMANDU, Aug 28: Minister for Finance Yuba Raj Khatiwada has said that the government is supportive toward establishing vehicle assembling plants in Nepal.
To minimize the import of vehicles, Nepali entrepreneurs should focus on assembly industry rather than importing vehicles, said Khatiwada, inaugurating the NADA Auto Show 2019 in Kathmandu on Tuesday.
According to Minister Khatiwada, the increase in number of vehicles in the country is extreme and unusual.
Establishing vehicle assembly plants will be a significant move for the country’s drive toward industrialization, Khatiwada said.
He said that the government will give priority to electric vehicle assembly plants, and that it will give 25% protection to the factories.
On the occasion, Minister Khatiwada said that an advisory committee has been formed at the Ministry of Finance to discuss about issues related to tax. “We will form a revenue board with experts to analyze the issues presented by the business fraternity.”
Khatiwada also said that the government will simplify the online process of vehicle renewal.
He said that the government will shift towards decreasing the customs duty of vehicles after the government finds alternative sources for revenue.
“The business fraternity has drawn the government’s attention toward the import of sub-standard spare parts, but are we responsible for this?” asked Khatiwada. He said that private sectors should also be transparent and responsible in terms of transactions.
The annual mega fair of automobiles, NADA Auto Show, started from Tuesday. The exhibition will run till September 1.
The exhibition, hosted by the NADA Automobiles Association of Nepal, will feature 95 stalls related to four-wheeler, two-wheeler, lubricants, spare parts, batteries, banks and insurance companies.