Kathmandu-A total of 774 BYD electric vehicles (EVs) imported into Nepal have been seized by the Armed Police Force (APF) amid suspicions that importers may have received advance information about upcoming tax increases on EVs announced in the national budget. Taking the matter seriously, the Ministry of Finance has directed the Department of Customs to form a high-level investigation committee.

The committee, coordinated by Under-Secretary Bhupal Raj Shakya, includes officials from the Ministry of Finance, Nepal Police and the Armed Police Force. It has been tasked with conducting field inspections, assessments and investigations to determine whether the vehicles were imported and cleared through customs in accordance with the law, and to submit a detailed report.

The APF seized the vehicles from various locations in Mustang, Parbat and Kaski districts between Wednesday night and Thursday morning.

The investigation was initiated following an emergency meeting at the Ministry of Finance on Thursday involving senior officials from the Department of Customs, Nepal Police and the APF. Authorities have begun probing the case based on preliminary suspicions that 'documentary fraud' may have occurred during the customs clearance process.

Following the incident, the Department of Customs recalled Rasuwa Customs Office Chief Tulsi Bhattarai to the department headquarters and assigned Under-Secretary Rajendra Dhungana from the Ministry of Finance to replace him. The leadership change came after questions were raised over the customs clearance process.

According to customs data, Cimex cleared 1,396 BYD electric vehicles through customs in the month before the budget announcement. As a result, the government is estimated to have lost Rs 1.027 billion in potential tax revenue that would have been collected under the new tax regime introduced in the budget.

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