Nepal seizes 775 EVs amid probe into budget tax leak

Authorities in Nepal have seized 775 electric vehicles imported from China via the Korala border crossing in Mustang district. The operation took place during overnight inspections along the Mustang-Kaski road corridor.

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the vehicles were being transported to different parts of the country when security personnel intercepted them following a tip-off.

None of the detained vehicles possessed registration plates. Officials suspect that importers may have expedited customs clearance for these vehicles to circumvent higher taxes on electric vehicles that were announced in the budget for the upcoming fiscal year 2026-27.

Information received by government agencies suggested a potential collusion between customs officials, clearing agents, and traders. This alleged collaboration aimed to facilitate the import of these vehicles before the budget's tax revisions were implemented. Large numbers of electric vehicles had entered Nepal through various border points in the days preceding the budget announcement.

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personnel were deployed overnight along the Korala route and seized the vehicles during the operation.

Security personnel intercepted the vehicles, which were en route to different parts of the country, following a tip-off. The Armed Police Force headquarters confirmed that personnel were deployed overnight along the Korala route to seize the vehicles. Authorities are now preparing to transfer the seized vehicles to customs offices for further investigation. Deputy Inspector General Dipak Shah stated that preliminary inquiries are underway, and the vehicles will be handed over to customs authorities upon their completion.

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the investigation was ongoing and the vehicles would be handed over to customs authorities once preliminary inquiries are completed.