Massive Pre-Budget EV Customs Clearance Sparks Controversy in Nepal; Opposition Demands Parliamentary Probe.

Massive Pre-Budget EV Customs Clearance Sparks Controversy in Nepal; Opposition Demands Parliamentary Probe.

Jun 12 2026, Friday 

A major political storm has erupted in Nepal following allegations of a pre-budget tax information leak that led to a massive, last-minute rush to clear electric vehicles (EVs) through customs. Opposition lawmakers are strongly demanding the formation of a parliamentary probe committee to investigate what they claim is a multi-billion rupee tax evasion scheme.

The controversy intensified after reports emerged that hundreds of electric vehicles predominantly BYD models—were cleared through customs checkpoints in a single day just before the fiscal year 2026/27 budget was presented on May 29. Concerns were raised over significant discrepancies between the data provided by the Finance Minister’s secretariat and the ASYCUDA (Automated System for Customs Data) records, triggering widespread suspicion of insider collusion.

Security Forces Intercept Hundreds of EVs

Acting on intelligence reports of potential fraud and rushed clearances, the Armed Police Force (APF) launched overnight operations along key transport corridors, including the Mustang-Kaski route. Security personnel seized 776 electric vehicles that had entered the country through the Korala and Rasuwagadhi border points from China.

A large majority of the intercepted vehicles lacked registration plates and were being transported hastily to various parts of the country. Government authorities suspect that importers, clearing agents, and certain customs officials may have colluded to fast-track the paperwork to avoid the higher customs duties and excise rates introduced in the new budget.

Allegations of Specification Manipulation and Massive Revenue Loss

The issue has also drawn severe criticism in parliament. Citing findings from the Auditor General's report, opposition members, including Rastriya Prajatantra Party (RPP) MP Gyanendra Shahi, accused the involved parties of manipulating vehicle motor capacities.

• The Loophole: Nepal’s tax structure offers lower customs and excise duties for electric vehicles with motor capacities below 100 kW.

• The Allegation: Importers allegedly declared vehicles with capacities intentionally below their actual specifications (such as labeling them as 99 kW) to slip into the lower tax bracket.

• The Impact: It is estimated that thousands of vehicles were rushed through in the days leading up to the budget, potentially causing a revenue risk and loss of over 3.77 billion rupees to the state treasury.

Finance Minister Denies Wrongdoing

In response to the mounting political pressure, Finance Minister Dr. Swarnim Wagle vehemently denied all allegations during meetings with the House of Representatives' Finance and Public Accounts Committees.

The Ministry of Finance issued a formal clarification stating that all EV imports were processed legally via standard commercial procedures, including regular letters of credit (LCs). Minister Wagle dismissed the accusations as politically motivated rumors aimed at defaming him, challenging lawmakers to present concrete proof of any corruption. He stated that the recent amendments to the Finance Bill were strictly made to correct linguistic errors, not to alter tax rates post-presentation.

Despite the ministry's defense, the Department of Customs has formed a high-level investigation committee comprising officials from the Finance Ministry, Nepal Police, and the APF—to thoroughly investigate the clearance process, while opposition lawmakers continue to stall parliamentary proceedings until a dedicated legislative probe is established.

Thank you for viewing the Online News Post! For new updates and detailed news, please like, share, follow, and subscribe. 

© Online News Post. 👍 Please share so that others can stay updated too.