January 1: Despite the government's policy of replacing petroleum-run vehicles with electric vehicles, imports of electric vehicles have declined by 88 percent in the first five months of the current fiscal year.

In the first five months of the last fiscal year, 315 electric vehicles were imported to Nepal. According to the data released by the Department of Customs, only 37 electric vehicles have been imported in the first five months of the current fiscal year, which is a decrease of 88.25 percent compared to the previous year.

The government had adopted a policy of encouraging electric vehicles to reduce pollution in the Kathmandu Valley two years ago. The target was to increase the number of electric vehicles to 20 percent of the total vehicles by 2020. However, entrepreneurs say that the government is saying one thing and doing another.

Prime Minister KP Sharma Oli has repeatedly encouraged the use of electric vehicles. Inaugurating the electric buses purchased under the Ministry of Tourism with the support of the Asian Development Bank, he also said that the country has entered the era of electric vehicles. However, the then Finance Minister Yubaraj Khatiwada increased the tax on electric vehicles by up to 70 percent in the current fiscal year’s budget.

Both the import and sales of electric vehicles have been affected by the tax hike. Not only has the government increased taxes, but the government has not been flexible in urging businessmen to set standards for the purchase of electric vehicles and charging stations. NADA Chairman Krishna Prasad Dulal said that the import of electric vehicles has been declining every year due to the government's failure to fulfill its commitments.

 “Businessmen have not been able to import electric vehicles due to the government's tax hike that has doubled the price,” he said.