Chamber Strongly Opposes Government’s Decision to Halt Registration of Public Vehicles

The Nepal Chamber of Commerce has expressed serious concern over the government’s decision to suspend the registration of new public vehicles. The Chamber stated that halting registrations could pose significant financial risks to automobile entrepreneurs and criticized the decision for being made without consulting the stakeholders. Kamlesh Kumar Agrawal, President of the Chamber, has urged the government to facilitate the registration process for vehicles currently in the pipeline and to adopt a long-term policy. (May 22, Kathmandu)

The Nepal Chamber of Commerce has conveyed its serious apprehension regarding the government’s directive to stop registering new public vehicles. In a press release issued on Friday, the Chamber highlighted that suspending registration for all public vehicles, including electric ones, may cause substantial economic risks for those in the automobile industry. The Department of Transport Management has implemented this suspension to ensure the scientific regulation of all public vehicles, including electric models.

While the government’s policy aimed at making public transportation management more scientific, systematic, and sustainable is commendable, the Chamber emphasized that halting registration abruptly without dialogue or coordination with business stakeholders is impractical. Hundreds of vehicles, imported on letters of credit backed by loans from various banks and financial institutions, are either awaiting customs clearance and registration, in transit, or have already been manufactured and dispatched by companies according to prior orders. The sudden halt in registration thus puts these investments at considerable financial risk, the Chamber stated.

The Chamber also warned that such vehicles imported specifically for public transportation cannot be repurposed or sold in other sectors, which could plunge entrepreneurs into severe financial crisis. It was noted that this situation may damage the credibility of Nepalese entrepreneurs with international manufacturers. Recalling how Nepalese businesses lost significant trust in international markets during the COVID-19 pandemic when the government abruptly restricted vehicle imports, the Chamber cautioned that this new decision sends a negative message about Nepal’s business environment. It further stressed that the move will directly impact public transport services, employment, automobile businesses, banking sector investments, and government revenue collection, urging an immediate reconsideration of the decision.

Kamlesh Kumar Agrawal, President of the Chamber, specifically requested the government to facilitate the registration and operation of vehicles currently in registration processes, in transit, or imported under previously approved protocols. He also called for practical, scientific, and long-term policies to be implemented following necessary consultation and coordination with the private sector and other stakeholders.