From Nepalitimes.com At 238 per cent, Nepal has one of the highest tax rates on automobiles. If this high tax rate intends to discourage automobile import, then it hasn't worked very well. Car sales dipped a bit with the banking crisis, but there is still demand. Car dealers argue that in absence of an effective public transport system, private vehicles are no longer a luxury and the high tax rate cannot be justified if it gives no additional returns. I think it's time for the government of Nepal to stop taxing exhoborant import tax. Vehicles are no longer a luxury, they are a necessity. In US we go to work 20-25 miles far away because we have cars. It is impossible to go 20-25 miles to work everyday on a bus in Nepal. In Nepal, the maximum distance people might be willing to go to work is 5-6 kms which still seems very far. In Kathmandu, it is possible to travel up to 10 kms which still takes a very long time. Its time Nepalese people submit memo to government of Nepal to bring down the vehicle import tax rate. 238 percent tax rate is unimaginable, i don't think it should be greater than 30%.
mancini · May 5, 2013 9:00 AM · 15,058 views
It will replace the moterbikes: do we have enough roads to bear the loads?
Magorkhe1 · May 5, 2013 9:40 AM
I think you couldn't be farther from the truth. An average middle class family in Kathmandu can afford a car, specially with the advent of bank loans. However, average middle class family in KTM is probably not even one percent in the entire country and 90 % of the country is below this class in economic standards. As such, cars are still a luxury item. While Import taxes like these make more sense if similar products were produced inside the country, in our context it still is not totally baseless given the limited road in the cities where they will be rolling...like Magorkhe pointed out as well.
Kiddo · May 5, 2013 9:59 AM
I dont think it will replace the motorbikes. May be only 25% or less population in Nepal has motor bikes which costs way less. There is so much percentage of population who can hardly afford a cycle. Remember you also need money to buy petrol; they don't run on water.
mancini · May 5, 2013 10:00 AM
Although it would be good from the perspective of the buyer there are two main reasons why it might not be a good idea. 1. There are not enough roads and infrastructure to handle an increase in vehicular traffic that will be triggered by decrease in taxes. 2. People who have spent exorbitant money to buy cars previously will see a huge decrease in investment and will come to the streets and do Chaka jam. Right now only a certain upper middle class can afford to buy cars.
rethink · May 5, 2013 10:38 AM
I think increase in vehicles in roads and traffic congestion will force the government of nepal to improve the road infrastructure. Government of Nepal does not do anything pre-emptively. First the problem arises and then they start thinking about the solution. So, this will be a round-round go; no road infrastructure-high tax rate-low vehicles-no road infrastructure.
mancini · May 5, 2013 10:46 AM
@ Mancini yo road thulo banaone kura naya hoina dherai purani tesaiko chhakar ma dherai garreb nimukha animaMadhyam bargia janta le sadak cheo ko ghar jagga gumaono pario Kati ta ghar bar bihin bhae aba aajhai thulo ramro banaone chhakar Garmi hudaina garreb nimukha ani Madhyambargia gareeb janta ko aashu ko paap lagcha
intelligentguy · May 5, 2013 10:57 AM
What the government should is impose a higher vehicle property Tax for the cities like Pokhara and Kathmandu and reduce the import tax overall. Only the vehicles registered in the value should have a vehicle tax equal to 240% rest of the country should impose little less tax. We definetly do not want to encourage car ownership with given infrastructure in the valley. The valley should have the same policy as Singapore for new vehicles. In singapore before buying a new personal vehicle you need a permit and the permit should cost 240% of the car value. Also, the revenue collected from the auto taxes should be spent on Roads, bridges, and public transportation subsdy only.
sidster · May 5, 2013 1:39 PM
Only in America: you pay less for automobiles. If we follow Singapore’s plan: is it going to work? Everybody wanted to use the backdoor or shortcuts and the pressure is not from newly rich persons but from the political party members who has minted money illegally. If we follow it: the personnel of that department will be getting a milking cow. Normal 0 false false false EN-US X-NONE X-NONE /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-priority:99; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin-top:0in; mso-para-margin-right:0in; mso-para-margin-bottom:10.0pt; mso-para-margin-left:0in; line-height:115%; mso-pagination:widow-orphan; font-size:11.0pt; font-family:"Calibri","sans-serif"; mso-ascii-font-family:Calibri; mso-ascii-theme-font:minor-latin; mso-hansi-font-family:Calibri; mso-hansi-theme-font:minor-latin;} Last edited: 06-May-13 01:02 PM
MAGorkhe1 · May 6, 2013 1:02 PM
Decreasing taxes would be a stupid move as it'd lead to a tremedous increase in auto sales. A 9-5 worker would be stuck in traffic till 12 pm, on his way to work.
riddle · May 6, 2013 1:11 PM
सबैले घर बसी काम गर्लान नि ?
MaGorkhe1 · May 6, 2013 3:20 PM
Just about every developing nations taxes heavily on imported cars. Govt. like Nepal depend on these import taxes for revenue coz no one in Nepal do 1040-EZ and someone got to pay for all the police, army, govt staff and last but not least all the politician. News from day-before http://www.myrepublica.com/por... more reading - http://en.wikipedia.org/wiki/B...
lamak_98 · May 7, 2013 12:54 PM
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