Addressing the 37th AGM of the Nepal Automobiles Dealers’ Association (Nada), Mahat also asked the traders to shift their investment from automobiles to infrastructure projects like hydropower.

With automobile traders demanding that the government reduce customs duty and vehicle tax, the minister said that its first priority was to expand the road network across the country and that their concerns would be addressed later. He added that it wouldn’t be a good idea to expand the number of vehicles in congested cities.

Mahat said that the government was positive to slashing customs duty on public

transportation vehicles rather than on private cars and motorcycles.

“Public transportation and taxi services are really bad in the cities, so the government has decided to formulate plans to improve them,” he said.

Pradip Jung Pandey, president of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), complained that the customs duty on motor vehicles in Nepal was the highest in the world.

Similarly, Nada President Shekhar Golchha said that the government had been discouraging the development of the domestic automobile sector by imposing high taxes.