KATHMANDU, APRIL 13: The Nepal Automobile Dealers’ Association (NADA) has forwarded its various recommendations to the government in order to help bolster the automobile industry of the country. A delegation of the Association led by its president Arun Chaudhary did so in their meeting with Minister for Finance Barshaman Pun held yesterday.
It suggested the government come up with a separate act to give a long-term continuity to the current exemption provision in excise duty to encourage the establishment of CKD Plants. Such plants are being by automobile traders as part of the “Make in Nepal” initiative that aims to speed up the industrialisation process of the country through import substitution and employment creation.
Similarly, in the case of hire purchase loans floated for vehicles run by petrol/diesel, the Association recommended increasing the Loan to Value ratio to 75 percent from 50 percent, bringing down the risk weightage to 100 from 125 and increasing the threshold of Rs 2.5 millon to Rs 5 million.
Likewise, Minister Pun was advised to take urgent measures to strictly control the illicit import of spare parts, lubricants and tyres into the country via the open border.
In response, he said that the government is serious towards the recommendations and would take the needed action in collaboration with the automobile dealers.
