Revenue asked customs department for full details of EV import

Kathmandu: The Revenue Investigation Department has requested all documents related to the import of electric vehicles (EVs). The department wrote a letter to the Customs Department, requesting all details submitted by EV importers during the import process.

There are allegations that EVs have caused billions of rupees in losses to the state through tax evasion. The Customs Department had previously written to the Tatopani and Rasuwa customs offices, suspecting tax evasion in EV imports. Following this, the Revenue Investigation Department initiated an investigation into the allegations of customs evasion by EVs.

The Revenue Investigation Department has been investigating whether electric vehicles have evaded taxes for the past month. The department has the authority to investigate any issue for up to six months.

"We are currently investigating. We have taken documents from one company and are requesting additional documents as needed," said an employee involved in the investigation. After reviewing the documents from the concerned company, additional documents have been requested from the Customs Department.

In the letter written to the Customs Department, the Revenue Investigation Department has asked for details including the country of production of the imported electric vehicles, the customs clearance value, the tax paid, and the motor peak power and capacity. The letter also mentions the need to include the number and brand of electric vehicles imported.

"We have not yet received a response to the letter sent to the Customs Department. The Customs Department is preparing the details as per our request," the employee said. "We expect to receive all the details from customs within two to four days."

The Revenue Department is continuously coordinating with the Customs Department, and further investigation will proceed once the required documents are received, the employee said.

Government agencies suspect that importers have understated the motor peak power and capacity when importing electric vehicles to Nepal. The Ministry of Finance concluded that EVs were being imported by understating motor capacity to deceive the government. Based on this conclusion, the Customs Department had written to the two customs offices and the customs clearance testing office in the first week of Jestha.

The letter from the Customs Department had anticipated possible tax evasion in the import of Chinese vehicles through the northern border. Following this, the Revenue Investigation Department seized documents from the office of the largest EV importer and seller, Cymex Inc., and is requesting additional documents as needed.

The Revenue Investigation Department plans to cross-check the customs clearance-related documents provided by Cymex Inc. with those obtained from the Customs Department. To facilitate this, the department is prepared to bring in experts as needed.

Chakra Bahadur Budha, Director General of the Investigation Department, told Ratopati that the department initiated the investigation after allegations of tax evasion by EV companies.

"We have started the investigation, and it is currently ongoing," Director General Budha said. "More information can be provided only after the investigation is completed."

The department's special team is conducting a thorough investigation, taking the issue of tax evasion in EVs very seriously.