KATHMANDU: Parliament has been facing repeated obstruction in recent days. Opposition parties have been disrupting proceedings, demanding clarification from Prime Minister Balen Shah over how he addressed border issues during a parliamentary Q&A session.
During these disruptions, opposition lawmakers have also raised another allegation. They claim the Finance Minister leaked information about a possible tax hike on electric vehicles to traders and have demanded his resignation.
However, such accusations are not new. Finance Minister Dr. Prakash Sharan Mahat is not the only one to face such claims. Similar allegations have been made against previous finance ministers as well.
Since EV sales started increasing in Nepal, claims of advance information leaks before tax revisions have surfaced repeatedly. Former Finance Minister Janardan Sharma was among the first to face such accusations during the FY 2022/23 budget. His tenure was marked by controversy, including the widely discussed “budget leak” case and the CCTV footage issue.
Likewise, during the FY 2023/24 budget, Dr. Mahat faced allegations that traders were informed in advance about tax changes. At that time, EVs with motor capacity between 50-100 kW were imported in large volumes before taxes were increased.
Despite repeated claims, no concrete evidence has ever confirmed that any finance minister leaked such information. These allegations have largely remained political talking points rather than proven facts.
Why do these allegations arise?
The claims usually begin with import data trends. Nepal’s budget is announced around mid-May each year. Before that, rumors about possible EV tax hikes often circulate among traders and industry insiders. These discussions sometimes appear in the media as well.
Based on their financial capacity, businesses import vehicles ahead of the budget. A few large business groups typically bring in higher volumes. This is also a practical move, as major festivals fall within five months after the budget, requiring sufficient stock.
Companies that sell around 3,000 to 4,000 vehicles annually often import enough units for half a year before the budget. Imports are usually focused on models where tax reduction is unlikely.
When such import data becomes public, it fuels speculation of insider information leaks. However, when tax rates remain unchanged, these claims rarely surface.
For example, between April 28 and May 26, 2025 (corresponding to Baisakh 15 to Jestha 13, 2082 BS), around 5,400 EV units were imported. This year, imports during the same period dropped by nearly half. Last year saw no tax revision, and no such allegations emerged. This year, with tax changes, the accusations resurfaced.
This pattern suggests that such claims are largely driven by political narratives rather than verifiable evidence.
