If you would like to learn more about the Electric Vehicle assembly in Nepal then please go through this read.
The new Nepal’s budget for 2079/2080 makes significant changes to FDI. Previously, a minimum investment of 5 million was required; now, a minimum investment of 2 million is required. Tax breaks for investments in electronic vehicle assembly plants are included in this new legislation.
If a new industry for manufacturing four-wheeled electric vehicles or ambulances is established. If the business is profitable. The tax break is worth up to 40% of the industry’s initial five years of operation.
Excise Duty Exemption
To begin, operating an electronic assembly factory in Nepal would necessitate the development of infrastructure as well as the importation of machinery for manufacturing four wheelers or ambulances. When bringing materials to the customs center in the excise duty for the 4 wheeler or ambulance, the equipment and raw materials required for its importation will be taxed at a 50% reduction.
Customs Duty Exemption
Customs duty will be 25% on four-wheelers or ambulances where raw materials are used. Similarly, the required raw materials or other parts for electric vehicle rickshaw, motorcycle, or scooter production will necessitate a 1% tax payment at customs.
After Budget two Electric vehicle assemble company receive License
Korean company Moterx Pvt. Ltd.
The investment board meeting decided to allow the Korean company Moterx to manufacture electric vehicles.
The board, chaired by Prime Minister Sher Bahadur Deuba, has granted permission to the company that proposed producing all vehicles at the investment conference to manufacture electric vehicles.
The Prime Minister has stated that only electric vehicles, not diesel or gasoline-powered vehicles, should be manufactured. According to one of the board members, the proposal has been approved.
The Korean company Moterx Pvt. Ltd. has proposed establishing an assembly plant in Butwal at the Motipur industrial area.
The company announced that it will invest 10 trillion and 54 million in assembly and production.
According to the investment board, 73.6 acres of land are required to establish industry. The first phase requires 24.7 acres of land, and the second phase requires 48.9 acres.
The company has proposed manufacturing and assembly of 50,000 vehicles. Segment A will produce 34 thousand passengers, Segment B will produce 15 thousand SUV vehicles, and Segment C will produce one thousand commercial vehicles.
Following the study and survey process, the investment board decided to hand over the project to the Moterx company.
The advantages of establishing such industries
According to the Economic Bill 2079, the government intends to provide 40% income tax breaks for six years from the date the industry begins operations. It is intended for new industries that manufacture four-wheeled electric vehicles or ambulances.
If an industry for the production of ambulances or four-wheeler vehicles is established, the import of the necessary parts or raw materials will be tax-free at 50% on the department of industry’s recommendation.
The government has now implemented a new provision that provides a 25% reduction in customs duty.
The government has begun a provision that would impose a 60 percent tax and customs duty on electric vehicles with capacities greater than 100 KW.
Shiva Ghimire Assembled Plant
It has registered with the industry department with the intention of establishing a 3 trillion rupee industry. According to sources, the well-known gas businessman Shiva Ghimire has registered the industry of producing electric vehicles such as motorcycles, scooters, cars, jeeps, and buses. He has also stated that he has obtained land in order to establish industry.
Ghimire currently owns a motorhead motorcycle company. Ghimire owns and operates a number of gas-related companies. He is in charge of the industry of oxygen gas plants. In addition, Ghimire is investing in the hydro sector.
Ghimire is buying a 32-acre plot of land in Simra, Bara District. He intends to start an ambulance company as well as other businesses on the property.
Ghimire created a company with the goal of producing a dozen three-wheel vehicles, 600 four-wheel electric vehicles (SUVs), and 200 electric motorcycles/scooters each year.
Similarly, he has registered an industry to produce 750 six-wheeler vehicles, 300 three-wheelers, and 1000 gasoline/diesel run cars/jeeps. He also plans to build 10,000 gasoline-powered motorcycles and 120 electric buses each year.
The industry intends to employ 431 people, and the details reflect a 2500 KW electricity consumption.
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Alpana Bhandari is a founding partner and CEO of Prime Legal Consultants and Research Center. She graduated from American University Washington College of Law. She specializes in corporate/arbitration and family law.