NADA welcomes govt’s special relief package for auto industry
NADA said the government’s swift response has given renewed confidence to all industry stakeholders.
KATHMANDU: The Nepal Automobile Dealers’ Association (NADA) has welcomed the government’s decision to introduce a special relief package aimed at reviving the automobile industry, which was severely affected by the recent protests.
A delegation led by NADA Chair Karan Kumar Chaudhary met Prime Minister Sushila Karki and Finance Minister Rameshwar Khanal, urging the government to provide targeted support to restore businesses impacted by the unrest.
NADA said the government’s swift response has given renewed confidence to all industry stakeholders.
“The Gen Z protests caused significant setbacks in the sector, damaging showrooms, vehicles, warehouses, and equipment, while disrupting the supply chain. In this challenging situation, the relief package announced by the government provides crucial reassurance and encouragement to our members,” NADA stated.
Key Provisions of the Relief Package:
Insurance Advance Payments: 50% of damages to buildings, vehicles, goods, and equipment, based on initial insurance survey reports, will be paid promptly.
Delayed Reimbursement Support: Insurance companies will provide up to 50% advance payments if claims processing is delayed.
Vehicle Replacement Loans: Banks will offer at least 80% financing for businesses purchasing new vehicles or transport equipment damaged during the protests.
Import Duty Relief: 50% reduction in customs duties and internal taxes for goods being replaced or restored after damage.
Tax Benefits: Contributions to the National Reconstruction Fund can be claimed for tax deductions.
Uninsured Assets: Businesses can claim tax deductions and cost adjustments based on asset valuation.
Loan Repayment Extension: Additional time for principal and interest repayment for affected industries.
Concessional Loans: Special loans at preferential rates for impacted businesses.
Employment Support: Subsidized loans with a 2% grant to help safeguard employment.
Business Facilitation: Government offices, banks, and revenue agencies will remain open on holidays (except Dashain) to facilitate trade and services.
NADA expressed optimism that these measures will provide direct relief to automobile businesses and dealers, helping the industry recover from the recent crisis.
