MPs Question Customs Duty Changes on Electric Vehicles

Kathmandu. Lawmakers have raised questions about alleged manipulation in the customs duty rate changes for electric vehicles (EVs) in the Public Accounts Committee of the House of Representatives. During discussions related to the Ministry of Finance, lawmakers expressed serious concern over changes in EV customs duty, budget amendments, and decisions.

Khushbu Oli, a lawmaker from the Rastriya Prajatantra Party (RPP), claimed that the internal investigation by the Ministry of Finance alone would not be sufficient. She demanded that a subcommittee be formed within the Public Accounts Committee itself to conduct a thorough study. Informing that she had collected details of 774 vehicles, including data on vehicles that arrived from customs, company details, and rate changes, she stated that she would present those documents to the committee in the future.

She emphasized that the recurring questions raised against the Ministry of Finance should be taken seriously and investigated impartially through a high-level committee or subcommittee. She argued that such an investigation would help strengthen good governance and transparency.

'The Finance Minister has already raised this issue before. Since an investigation by his own ministry might only appear as a superficial act, let the Public Accounts Committee form a subcommittee,' said lawmaker Oli. 'We must take this matter seriously. As such accusations are frequently leveled against the Ministry of Finance, let's form a high-level committee once, or conduct a deep study by forming a subcommittee of our own committee.'

She clarified that this proposal was not intended to personally accuse or harm anyone but was made with the objective of making good governance more transparent and trustworthy. 'My demand is that the Public Accounts Committee immediately form a subcommittee, including all previous matters along with the 774 vehicles, and bring the truth to light through a deep investigation,' she added.

Meanwhile, Manish Jha, a lawmaker from the Rastriya Swatantra Party (RSP), stated that clarity is needed regarding policy ambiguity and uncertainty related to EV imports after the budget announcement. While mentioning that it is not appropriate to create unnecessary controversy during the sensitive period of budget implementation, he stressed the need for clear legal provisions. He stated that although an investigation into potential irregularities is necessary, the performance of the Ministry of Finance should not be unnecessarily obstructed.

'According to the data I have obtained, the customs duty has been reduced for some vehicles. As a result, in some cases, traders have incurred losses, while the state has benefited in terms of revenue,' said lawmaker Jha. 'For example, in the case of the BYD vehicle being cleared from Mustang's Korala, the customs duty has been reduced through the budget. Although this reduces the traders' profit, it appears to have had a positive impact on the state's revenue collection. A detailed study of the available data is necessary.'

Questions were also raised in the committee regarding amendments and changes made in the budget. Lawmakers specifically inquired about the reasons for amending certain provisions. Looking at past practices, it is not new to amend budget and policy documents when the literal meaning can differ or when technical errors are identified. The argument was also made in the meeting that if the meaning of a word or provision can be interpreted differently, correcting it is a normal administrative process and should not be viewed unusually.

Similarly, lawmaker Khagendra Sunar stated that creating excessive controversy in the parliament or committee during the current budget implementation period is not appropriate. Expressing confidence in the Finance Minister's capabilities, he argued that while potential errors at the staff level can be investigated, controversy should not be escalated in a way that affects the ongoing planned work.

'Regarding electric vehicles, whatever is being said now, it should be clearly stated whether to stop them, that the budget is coming on such a date, and that vehicles cannot be brought after such a date. The legal provision allowing them should not be misinterpreted,' said lawmaker Sunar. 'One might consider it natural to bring in clothes or drying items when it's about to rain. If there is malicious intent somewhere, let's discuss it. But this is the time for budget implementation and paddy transplantation. It is not appropriate to create controversy in the committee over this issue at such a time.'

He claimed that the country has an excellent expert as the Finance Minister and stated that unnecessarily harassing the Finance Minister without reason would not benefit the country. 'The situation regarding the minister is clear. If the staff have committed any wrongdoing or error, let's investigate. But if we start saying that something growing in the womb must be brought out now, it will not be beneficial,' he added.

Sunar emphasized the need to resolve policy ambiguities and move forward. Other lawmakers speaking at the meeting also demanded a response from the Finance Minister regarding the alleged tax evasion on EVs.