Transport Entrepreneurs Seek Tax Relief for EV Parts, Propose Accident Relief Fund

The National Federation of Nepal Transport Entrepreneurs has submitted an 11-point memorandum to Finance Minister Dr. Swarnim Wagle, calling for immediate measures to address long-standing challenges in Nepal’s transport sector. A delegation led by Federation President Punya Prasad (Saroj) Sitoula met with Minister Wagle on Monday and urged the government to provide customs duty exemptions on electric vehicle parts and introduce subsidies to promote technology-driven and environmentally friendly transportation. The federation said the government should take immediate steps to protect around Rs. 1.3 trillion in capital invested in the public transport sector and the livelihoods of around four million families dependent on it. It also called for the immediate implementation of the report prepared by the inquiry commission headed by former Secretary Dipak Subedi and timely revision of the Motor Insurance Tariff Directive, 2073. As part of its proposals, the federation has suggested establishing an Accident Relief Fund by collecting an additional Rs. 1 per liter on petrol and diesel and Rs. 1 per unit on electricity used by electric vehicles. The fund, according to the federation, should also receive 1% of insurance premiums and financial contributions from the government. The entrepreneurs further demanded the removal of the 72-hour facility currently provided to Indian passenger and freight vehicles, tighter controls on vehicle imports, amendments to the Companies Act and a uniform tax system. They also called for the establishment of a powerful Transport Authority to ensure effective regulation and development of the sector, along with a review of operating hours for tipper trucks in the Kathmandu Valley. The federation emphasized the need for subsidies for technology-friendly transportation and better planning based on market demand. Receiving the memorandum, Finance Minister Wagle said the government was positive about addressing legitimate concerns raised by the transport sector and assured the delegation that the ministry would study the proposals and take appropriate action.