Finance Minister Wagle Says He Will Quit Public Life If EV Tax Misuse Is Proven

Finance Minister Dr. Swarnim Wagle has strongly denied allegations that budget information related to electric vehicle tax changes was leaked before the fiscal year 2026/27 budget. Speaking at the Public Accounts Committee (PAC) of the House of Representatives on June 11, Wagle said rumours were being spread to damage his name and create doubt over revenue decisions. He challenged lawmakers to present proof of even Rs 2 being misused and said he would leave the finance minister’s post, politics, and public life if such evidence was found.

The allegations are linked to the large number of BYD electric vehicles that entered Nepal before the new budget was announced. Opposition has questioned whether traders received advance information about tax changes and rushed EV imports before the budget introduced the Clean Infrastructure Investment Fee (CIIF) for electric vehicles. Questions also grew after reports claimed that a Rs 2 million to Rs 3 million EV price bracket had no clear tax rate assigned in the budget documents, which some critics said created a tax free area for many popular Chinese EVs.

According to Cimex Inc., BYD’s authorised distributor in Nepal, hundreds of BYD EVs entered Nepal through the Korala border point in Mustang and Rasuwagadhi between May 6 and May 27. The company said customs clearance was completed according to inventory plans, shipping schedules, and business needs. On May 26 and 27 alone, 649 vehicles were cleared through Mustang customs, and the customs chief said the importer had arranged around 50 to 60 drivers at once by bus to collect the vehicles.

After the budget was presented on May 29, reports said the new EV tax system raised questions because of the missing tax slab and possible benefit to vehicles in the Rs 2 million to Rs 3 million range. In early June, Wagle said a small footnote had been left out of the budget documents and later revised the road construction levy for EVs priced below Rs 2 million from 5 percent to 2.5 percent. Critics, however, argued that the issue was more serious than a small missing note.

The issue widened after nine customs officials, including the chief customs officer at Rasuwagadhi, were transferred to the Department of Customs on June 3 following a government probe committee’s recommendation. On June 5, the Armed Police Force seized 776 electric vehicles from Hemja, Kusma, Jomsom, Korala, and Rasuwa for investigation. However, Cimex denied wrongdoing and said it would cooperate with investigators.

The Finance Ministry later called the allegations against Wagle misinformation, while Wagle said at a Finance Committee meeting on June 10 that not a single dot was changed in the 460 page budget document and that an amendment to the Finance Bill was made only because some points from the budget statement had been left out.