Kathmandu. The motorcycle market has been in turmoil after the government increased the tax and customs duty on motorcycles above 200 cc through the budget presented in the federal parliament on May 30.
Especially in the 350cc segment, the government seems to have lost sight of this.
The government has increased the customs duty after the fact that brands like Royal Enfield, Honda, Java and KTM are selling 15,000 units of large motorcycles annually in Nepal.
Thus, it is estimated that the price of motors in this segment will increase by up to Rs 200,000 as soon as the government raises several taxes at once.
Royal Enfield and Honda, the companies that sell most motorcycles in this segment in Nepal, have already published new price list of motorcycles.
Alpha Automobiles, Nepal’s new distributor for Royal Infield, has increased the price of a single motorcycle by up to Rs 221,000 by announcing a new price list.
Similarly, Honda has increased the price up to Rs 1 lakh.
Another company Java has been selling motorcycles ranging from 300 cc to 335 cc. The company has not yet increased the price of Java motorcycles.
Apart from these brands, brands like Benelli, TVS, BMW are also selling motorcycles above 300 cc. However, the companies have not increased the price.
These brands are also expected to release new price lists in the next few days.
The NADA Automobiles Association of Nepal has demanded to withdraw the increased tax saying that this segment is considered as a very luxurious motorcycle in the eyes of the government.
‘350cc motorcycles are also needed to improve our road conditions, adventure tourism and riding culture. Due to the government’s policy, the showrooms have to be closed, ‘said Abhik Jyoti, chairman of NADA’s Two Wheeler Committee.