Kathmandu-Finance Minister Swarnim Wagle questioned MPs during a meeting of the House of Representatives Finance Committee on Wednesday, 'Can a prestigious brand like BYD do such a thing?' The question came amid growing concerns, from the streets to Parliament, over the alleged release of BYD vehicles in unusually large numbers after information about a tax increase was leaked before the budget announcement.

After lawmakers repeatedly questioned the Finance Minister and accused the budget preparation process of benefiting a particular company through a tax information leak, Wagle appeared before the Finance Committee on Wednesday and the Public Accounts Committee on Thursday to answer their questions. During the meeting, he responded by asking the lawmakers themselves, 'Would a brand like BYD do such a thing? Perhaps it was the importing company?'

The remarks came after media reports that BYD vehicles were released after prior knowledge of the tax increase before the budget, raising concerns over damage to the brand’s image. Wagle argued in the committee that a globally recognised brand like BYD could not have been involved, and suggested responsibility lay with the importing company.

The Finance Minister’s defence of a brand under scrutiny over vehicle imports and tax liabilities has drawn attention. His remarks have raised questions in Parliament over transparency and governance.

BYD’s official distributor in Nepal, Cimex Inc. Pvt. Ltd., has previously faced scrutiny over vehicle imports and pricing.  Biznessnews has reported that Cimex imported vehicles at lower declared prices and sold them at higher rates. The company has also lost a case before the Revenue Tribunal. Questions have been raised over whether the issue can be separated from the role of Cimex in the import process.

Speaking at Wednesday’s Finance Committee meeting, Wagle said: 'The Finance Committee is a constitutional body that monitors, warns and can issue directives to the Ministry of Finance. I want to make one thing clear. BYD is an extremely prestigious brand and has recently become associated with the identity of our friendly nation, China. You have all seen on Facebook the advanced technology that allows a vehicle to be produced in four or five minutes. If there is fault, it may be that of the importing company. Why is the brand being defamed? Why BYD, BYD, this and that? Is there some other game being played here?'

The remarks, especially his description of BYD as a 'very prestigious brand' and his concern over reputational damage, have drawn attention. It is generally expected that governments remain neutral and avoid statements that can be seen as favouring a specific brand, particularly when matters are under discussion.

Wagle also told lawmakers that many other brands had paid more tax than required under the new budget rates. Questions have been raised over that claim.

Taxes increased on nearly all electric vehicle models under the new budget. According to customs-declared CIF values, all BYD models were subject to higher taxes under the revised rates. Biznessnews reported that the release of 70 Sealion 7 vehicles alone resulted in a revenue loss of Rs 322.27 million. Despite this, Wagle maintained that higher taxes had already been paid on BYD vehicles released before the budget.

When brands face controversy in other countries, investigations are generally allowed to proceed without government officials publicly defending them. Against that backdrop, Wagle’s remarks in Parliament have drawn wider attention.

RSP lawmaker Bipin Acharya also defended the company in similar terms. Acharya, who is a member of the Finance Committee, argued that allegations against an international brand without evidence could damage its global reputation and affect future foreign investment.

'Making allegations without evidence against an international brand like BYD can damage the company's reputation globally and affect future foreign investment. If there is any weakness, it may lie with the local importer, but it is wrong to defame the entire global brand,' Acharya said during Wednesday’s meeting.

The defence of BYD by both the Finance Minister and a member of the ruling coalition has raised questions in business circles.