Vehicles major contributor to customs revenue

KATHMANDU, AUG 12 - 2013

Imports of automobiles and their parts accounted for 16.54 percent of the government’s revenue during the last fiscal year 2012-13, the department has announced.

The DoC collected a total of Rs 126 billion revenue during the year in customs duty, value added tax (VAT) and excise duty. Out of that figure, Rs 22.11 billion was collected from cars, bikes and chassis, according to the DoC.

In the vehicle import category, car, jeep, van generated the highest amount of revenue totalling Rs 10.2 billion, followed by the bike which accounts Rs 9.8 billion.

Likewise, the government collected revenue of Rs 2.1 billion from the import

of bus and truck chassis. Each year, the import of items such as vehicle and gold contributes huge amount to the government revenue. DoC officials attribute the rise in revenue collection to the growth in import of the automobile products and dollar appreciation.

New vehicles totalling 208,483 units, including 175,381 bikes and 9,595 units of the car, jeep, van were imported into the country in the last fiscal year, according to the Department of Transport Management (DoTM). The registration was up by 22 percent on 170,084 vehicles in the country during the previous fiscal year 2011-12.

Devi Ram Bhandari, spokesperson for the DoTM said that the import and sales had increased after a slowdown for a few years in the local market. “Mainly the business of two-wheelers is growing with the sales picking up,” he added. The automobile products are among the top ten products imported into the country.

Besides the vehicles, high-speed diesel, petrol, LP Gas, MS billet, garment, brown cement and polythene granules feature on the top 10 lists of imported products in terms of revenue collection. The government collected revenue of Rs 9.02 billion from the import of high-speed diesel, Rs 5.94 billion from petrol and Rs 4.13 billion from LP Gas.

According to the annual review report, the country imported agri products and other foodstuffs worth Rs 30.73 billion, up from Rs 19.64 billion in the previous fiscal. Revenue of Rs 1.61 was collected from the import of the foodstuffs. Rice, wheat, maize and potato are the major agri products imported during the last fiscal year.

Source: The Kathmandu Post

Czech Republic shows interest to boost investment in Nepal

KATHMANDU, May 8, 2012

Czech Republic has expressed interest to extend cooperation in establishment of automobile industries, cement factories and power generation plants in order to give a boost to Nepal´s industrial sector.

"We see the future of Nepal in the industrial sector," Jiri Janick, head of the commercial and economic section of Embassy of Czech Republic in India, said at an interaction on Monday. "Industries like automobile, equipment for power generation and cement plant among others can be viable in Nepal."

A visiting delegation of Czech Republic led by Miloslav Stašek, ambassador of the Czech Republic to Nepal, shared that Nepal´s economy can grow at a faster pace through the promotion of industrial sector. "Nepal and Czech Republic have vast scope for cooperation in areas such as trade, commerce and development," Stašek said. "We see distinct possibilities to cooperate in hydro power projects, automobile, waste management, water solution, tourism and services."

In addition to that, Confederation of Nepali Industries (CNI) and Confederation of Czech Industries (CCI) shall soon ink in a memorandum of understanding (MOU). "This will enable business communities of both countries to work together more closely," Stašek added. "The MoU will establish a formal relationship between businesspeople of two countries for further economic cooperation."

Narendra K Basnyat, senior vice-president of the CNI, which organized the interaction, said: "The government of Nepal is also committed to create business friendly environment by implementing new industrial policies and bringing new Industrial Enterprise Act to attract foreign direct investment."

The volume of trade between Czech Republic and Nepal has been increasing gradually but it is in favor of the Czech Republic, which exports automobile and electric equipments to the country. Nepal mainly exports goods such as readymade garment, handicrafts, hand-knotted woolen carpets, tea and medicinal herbs to the Czech Republic. Imports from the Czech Republic mainly constitute medicine and medical equipment, electrical goods, machinery and parts, glass beads, motor cars, bulldozer, crane and parts and foodstuffs.

Additionally, Czech Republic has shown keen interest to invest in joint ventures in Nepal in the areas of water resources, roads, food industry and construction.

Source: Republica