KATHMANDU: The Office of the Auditor General has pointed to possible revenue evasion worth billions of rupees by suppliers importing electric vehicles from China through alleged manipulation of motor power specifications.
In its 63rd annual report, the Office of the Auditor General stated that more than half a dozen electric vehicle importers understated or altered peak motor power details in customs documents to evade customs duty and excise tax.
Under Schedule 3 of the Customs Tariff Act, imported electric vehicles are subject to customs duties of 20 percent or 30 percent and excise duties of 15 percent or 20 percent depending on the vehicle’s peak motor power.
However, the report noted that some suppliers submitted invoices and customs declarations containing motor power details that differed from the actual specifications of the vehicles, thereby reducing the applicable tax rates.
The Auditor General stated that such discrepancies were found in both assembled and unassembled electric vehicles.
The report specifically mentioned vehicle models including Deepal, JAC J6, Avatr 11, and XPeng, stating that a review of official catalogues available on company websites suggested possible revenue leakage during import.
Based on the findings, the report recommended recovery of Rs 1.10 billion in unpaid revenue linked to those vehicle imports.
Similarly, the report stated that imports of vehicles under the Dongfeng brand may have resulted in revenue evasion of Rs 174.1 million, while imports of X30 LEV passenger vans may have caused an additional Rs 98 million in lost revenue, both of which the report recommended for verification and recovery.
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