Kathmandu. The Nada Automobiles Association of Nepal has said that the budget for the upcoming fiscal year has not addressed its demands. The monetary policy unveiled by the Nepal Rastra Bank (NRB) on Friday did not go as expected, nada said. According to NADA, the monetary policy unveiled by Governor Bishwanath Poudel is far from what the automobile entrepreneurs expected.

Nada has also complained that the monetary policy has not taken the suggestions given by the automobile sector seriously and has not been addressed. Nada also said that the existing policy related to the automobile sector, which needs to be reformed, has been kept intact.

Nada has also complained that no facilitation has been provided with regard to the import of vehicles, the old policy has been maintained on luxury, heavy segment and high-tech vehicles. “While customs and tax exemptions have been maintained for electric vehicles as in previous years, there has been no significant improvement in vehicle credit, import processes and industrial recognition in other important areas,” nada said.

According to NADA, the monetary policy is aimed at encouraging the use of electric vehicles. It also said that efforts are being made to promote green finance and sustainable transport infrastructure development. However, NADA has complained that direct loan disbursement for electric vehicles has not been given priority.

The monetary policy has also said that necessary amendments will be made in the regulatory arrangement to include the issues of ‘Fit and Proper Test’ loan interest rate calculation, service fee, etc. in the policy and procedural arrangement to approve the company giving higher purchase loan.

In the context of vehicle loans, especially for fuel-powered and luxury vehicles, loan-to-value provisions are still tightened, nada said. The provision of loans for personal vehicle loans has not been amended. Automobile entrepreneurs have called it a continuation of the illiberal policy.

Although it has been admitted that floods and border-related barriers have hindered them, no new measures have been included in the policy to facilitate the import of vehicles. “Although the Rastra Bank has expressed its willingness to coordinate with the concerned ministries and customs points, it has not taken any initiative for concrete implementation,” nada said.

Although no specific roadmap or reform programme has been set for the upliftment of the automobile sector in the monetary policy and general priority has been given to the production-oriented sector, the automobile sector has not been given a clear policy priority.

“We believe that clear policies and support are essential for the growth of the automobile sector by recognising the contribution of the automobile sector in the promotion of the electronic ecosystem, employment generation and industrialization of the country,” nada said. ’