Rise in lending rate causes motor vehicle imports to fall
February 22, 2017 12:50 AM NPT
By: Rekha Bhusal
BHAIRAHAWA, Feb 22: Rise in lending rates of banks and financial institutions (BFIs) has led to significant drop in import of motor vehicles in the country through Bhairahawa Customs Office.
Though automobile imports generally increases during mid-January to mid-February, the number of motor vehicles imported in the review month fell compared to past months, according to Bhiarahawa Customs Office. “Higher lending rates have directly affected import and export businesses. The rise in lending rates has hit the import of motor vehicles hard,” Bhusal Raj Shakya, chief customs officer of Bhairahawa Customs Office, said.
Of the total revenue mobilized by Bhairahawa Customs Office between mid-August and mid-December, 53 percent came from import of motor vehicles. Revenue collection from motor vehicles dropped by 43 percent in mid-February, according to the customs office. The office collected Rs 1.49 billion from import of motor vehicles in mid-February, compared to Rs 1.72 billion in mid-January.
According to Gopal Bhattarai, communication officer of the customs office, around Rs 2.68 billion was collected from the import of motor vehicles between mid-November and mid-December. “Altogether 549 cars and jeeps were imported to Nepal via Bhairahawa Customs during mid-Dec to mid-January. But the number decreased to 378 during mid-Jan to mid-February,” Bhattarai said.
Drop in import of motor vehicles has caused total revenue collection to fall. The Bhairahawa Customs Office, which had mobilized Rs 5.23 billion during mid-December to mid-January, saw revenue fall to Rs 4.43 billion during mid-January to mid-February. The office has set a target of mobilizing a total of Rs 54.68 billion in the current fiscal year.