Under pressure from car traders, the government authorizes the import of vehicles under conditions – myRepublica
Auto traders, who opened the letters of credit before April 26, are now allowed to import vehicles, which cost 9 billion rupees in foreign exchange reserves.
KATHMANDU, August 18: The government has authorized the import of vehicles conditionally, reversing its earlier decision to impose a complete ban on the import of automobiles.
By publishing a notice in the Nepal Gazette on August 11, the Ministry of Industry, Trade and Supply allowed the import of automobiles on the condition that importers open Letters of Credit (LC) by April 26. . Bowing to pressure from auto traders, the government has been lenient on importing vehicles, one of the luxury items that drives a large amount of foreign currency out of the country.
After the country started to face the heat of depleted foreign exchange reserves, the government imposed a ban on imports of 10 luxury items by publishing a notice in the Nepal Gazette a few months ago . The import embargo applied to imports of cars, vans and motorcycles with an engine capacity greater than 250 cc.
Alcohol, mobile devices over $600, color televisions over 32 inches, diamonds, cigarettes and tobacco products, toys and playing cards, and ready-to-eat snacks like potato chips have also been included in the list of government restrictions.
Auto dealers are asking the government to allow the importation of vehicles under the pretext of the approach of Dashain and Tihar, the major Hindu festivals, when vehicles make bulk sales. With government clearance, about 900 imported vehicles worth Rs 9 billion will soon be available for sale in the domestic market.