Lack of Testing Equipment Raises Questions About EV Capabilities: Director General Bhattarai

Mahesh Bhattarai, Director General of the Department of Customs, has raised concerns about the inability to verify the actual capacity of electric vehicles (EVs) due to a lack of proper testing machines. Speaking at a Public Accounts Committee meeting on Friday, he explained that while the Department of Transport Management is responsible for testing vehicle capacity, the absence of necessary equipment has made the process ineffective.

Tax Evasion and EV Promotion Policies Under Scrutiny

Bhattarai pointed out that Nepal’s current customs arrears exceed 20 billion NPR, partly due to tax exemptions given to locally assembled EVs. He acknowledged that while the government’s promotional policies for EVs are well-intentioned, questions have been raised about the declared motor capacities of these vehicles. The Auditor General has also flagged this issue, but without proper testing tools, verification remains challenging.

Wide-Ranging Tax Evasion Issues

The Director General further highlighted that tax evasion extends beyond EVs, covering items from tobacco to gas bullet shipments. However, the department is actively working on an action plan to strengthen enforcement and recover pending dues more effectively.

The lack of testing infrastructure continues to pose challenges in ensuring transparency and compliance in Nepal’s growing EV market.