NAIMA urges to raise auto loan ceiling to 80%

By A Staff Reporter 

Kathmandu, Apr. 9:  Nepal Automobile Importers and Manufacturers Association (NAIMA) has urged the government to ensure easier financial access by maintaining a hire-purchase system allowing up to 80 per cent financing with a 20 per cent down payment.

In a meeting with Finance Minister Dr. Swarnim Wagle on Monday, a delegation from NAIMA has urged the government to reduce the overall tax burden, simplify and rationalise the tax structure, and increase the auto financing to 80 per cent - about 20 per cent up from the current arrangement. 

Presenting detailed suggestions on policy and systemic reforms related to the automobile sector, President of NAIMA Ritu Singh Vaidya stressed the need for a stable, predictable policy environment based on consultation with stakeholders, and called for the automobile sector to be recognised not as a luxury but as a necessity. 

The association noted in a press statement on Wednesday that even after customs clearance is completed, differing interpretations at the audit level have led to irregularities being raised, creating business uncertainty. It called for a clear, uniform and transparent system. 

It also highlighted the need for customs facilitation, development of testing infrastructure, revision of the Transport Act, integration of digital systems, improvement of road safety and pollution control, promotion of assembly industries under the ‘Make in Nepal’ initiative, and ensuring long-term policy stability.

There is a need for clear, stable and incentive-based policies for electric vehicles, said NAIMA and called for proper classification of hybrid vehicles and the formulation of balanced and fair policies based on their technological features.

In response, FM Dr. Wagle said the government remains positive about creating a business-friendly environment and is working towards making the overall tax system more balanced and practical. He also expressed commitment to incorporating the suggestions, as far as possible, into upcoming policies, programmes and the budget for the Fiscal Year 2026/27.

In a separate meeting, the NAIMA delegation also held discussions with Physical Infrastructure and Transport Minister Sunil Lamsal on current issues in the mobility and automobile sector. Minister Lamsal said the government is taking positive steps towards a policy arrangement that would reinvest a certain percentage of tax revenue generated from the sector back into its development. 

He also assured that the practical suggestions put forward by NAIMA would be taken forward for implementation without delay.