Tika R Pradhan

Kathmandu, July 11:

The Department of Transport Management (DoTM) has proposed the government slash custom duty on new vehicles replacing 20-year-old ones by as much as 25 per cent.

The committee to implement and monitor the government’s decision to replace all 20-year-old vehicles in the valley has proposed the 25 per cent slash in custom duty or a 25.5 per cent slash in VAT and is waiting for the Ministry of Labour and Transport Management nod.

Administrative director of DoTM, Sharad Adhikary, said that the committee has also proposed not to collect pollution tax from owners of vintage vehicles.

The panel has also decided to allow the same sort of vehicles to replace the old ones. However, taxis at the airport, hotels and also the meter-less taxis and vans can be replaced by limousines.

“We have proposed for a 50 per cent slash in vehicle tax for such vehicles but they should inform the traffic police prior to rolling out on the street,” he said.

Statistics show that there are around 12,000 such vehicles plying in the valley.

Of these, 10,000 are public vehicles while the rest are owned by the government.