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The Rising Nepal | Nepal's First English Broadsheet Daily.
3 sources · 3 articles
Started 2 days ago · Updated 2 days ago

Chinese Electric Vehicles Accused of Evading Customs Duty in Nepal

Photo · english.ratopati.com

The Auditor General's report has revealed that Chinese brand Joylong electric vehicles have evaded approximately Rs 25.8 million in customs duties by fraudulently declaring minibuses as microbuses to exploit tax concessions for public transport. This manipulation allowed importers to pay significantly lower taxes on vehicles like the Joylong E-4, E-5, and E-6 models, which are internationally classified as microbuses or vans.

  • The government offers significant customs and tax exemptions for electric public transport vehicles like large buses and minibuses to promote accessibility and environmental friendliness.
  • Legal provisions dictate higher customs duty, excise duty, and VAT for microbuses or vans intended for private use compared to larger public transport vehicles.
  • Joylong importers exploited this loophole by misclassifying their vehicles, which are internationally recognized as microbuses or vans, under the SS code for minibuses.
  • This fraudulent declaration resulted in substantial evasion of state revenue, as the lower tax rates applicable to minibuses were applied to vehicles that did not meet the technical standards for such classification.

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