Is the car’s price fair for every Nepalis?
A car (four-wheeler) is regarded as the best source of transport for short-to-long distance roads, and it provides better safety, convenience, and comfort features. In the US, around 93% of households own at least one car, which is also the case in most other countries.
But is every Nepalis able to share the luxury of owning an automobile? The average Nepalese annual income is around Rs 15 lakh, and the minimum cost of an entry-level car is around Rs 28.60 lakh, so Nepalese must save for more than 2 years without incurring any expenses, which is impossible. However, automobiles do offer financing options, and with the existence of the pre-owned car market, cars come at a rather cheaper price. But still, the dream of owning a car is far from the reality for most of the Nepalese.
In Nepal, almost all cars are imported, which causes their price to be slightly higher comparatively, but the tax implementation on these imported cars makes them expensive. Currently, the Nepal Government has been imposing 80% custom duty, 80% excise duty, 13% VAT, and 10% road construction fee on a gasoline car (depending upon cc) and 10-40% custom tax, 0% excise duty, 13% VAT, and 5% road construction fee on an EV. So, if we say an ICE car costs Rs 10 lakh in India, then after the tax implementation and insurance coverage, the car comes in at Rs 28.30 lakh here. In order to buy a car we must pay double its actual price, and can every Nepalese afford to do so?
By owning a car, the freedom of mobility comes along with it, so it must be accessible to every Nepalese; each individual doesn’t need to own a car, but at least every family should have a car for the means of transportation.