Dealers elated as autos termed ‘non-luxurious goods’ in budget

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Kathmandu, May 31

NADA Automobiles Association of Nepal (NAAN) – the umbrella body representing automobile dealers in the country – has praised the fiscal budget citing that it has partially acknowledged automobiles as ‘non-luxurious’ goods.

Issuing a press statement, NAAN (formerly called Nepal Automobile Dealers’ Association) welcomed the government’s decision not to raise excise duty on four-wheelers up to 1,000cc and two-wheelers up to 150cc.

“Since long, automobile dealers had been urging the government not to further increase taxes on vehicles as they can no longer be considered luxurious items in Nepal. We believe that the government did not increase excise duty on low cubic centimetre (cc) capacity vehicles following the realisation that such vehicles are integral part of human lives,” Shambhu Dahal, president of NAAN, said in a press statement issued here today.

Similarly, auto dealers have also praised the budget citing that it has highly focused on economic disciplines and emphasised enhancing industrial sector in Nepal.

They have also praised the government’s move to effectively use taxes collected from automobile sector under headings like ‘pollution tax’ and ‘road maintenance tax’. Auto dealers have also welcomed the government’s decision to improve tax administration through the federal budget.

On top of that, automobile dealers said that increase in excise duty on two-wheelers above 150cc and four-wheelers above 1,000cc will have a direct impact not only in the revenue of the government, but also the domestic automobile industry.

Through the budget, the government had increased excise duty on vehicles above the aforementioned capacity by up to 40 per cent. Previously, excise duty on vehicles was 60 per cent. With the new tax adjustment, excise duty on vehicles has reached up to 100 per cent.

The post Dealers elated as autos termed ‘non-luxurious goods’ in budget appeared first on The Himalayan Times.

Written by Sandeep
This news first appeared on https://thehimalayantimes.com/business/dealers-elated-as-autos-termed-non-luxurious-goods-in-budget/ under the title “Dealers elated as autos termed ‘non-luxurious goods’ in budget”. Bolchha Nepal is not responsible or affiliated towards the opinion expressed in this news article.