OAG Report Finds Tax Evasion in Import of Deepal and Nami Vehicles Linked to Vishnu Agarwal

KATHMANDU — The Office of the Auditor General (OAG) has concluded in its report that MAW Vriddhi Autocorp Pvt. Ltd., a company linked to businessman Vishnu Agarwal, evaded customs duties worth billions of rupees while importing electric vehicles. The 63rd annual report of the Auditor General states that the company falsely declared the motor capacity of electric vehicles such as the Deepal E-7 and Nammi Box, and manipulated customs tariff classifications to significantly reduce tax liability.

According to the report, although international specifications show that the Deepal E-7 has a peak motor power of 252 kilowatts, it was declared in Nepal as having less than 200 kilowatts, allowing it to be classified under a lower tax bracket. Similarly, the Nammi Box vehicle was declared as having a 50 kW motor, enabling clearance under a lower tariff category, even though its brochure indicates a capacity of around 70 kW, which would place it in the 50–100 kW tax slab instead.

Based on the Auditor General’s findings, customs offices at Rasuwa and Tatopani alone saw revenue leakage of about NPR 2.5063 billion due to underreporting of motor capacity and incorrect classification of electric vehicles. The report has instructed authorities to investigate and recover the amount.

Under the Customs Duty Act 2081, tax rates for electric vehicles are determined by peak motor power. Vehicles in the 50–100 kW range are subject to 20% customs duty and 15% excise duty, while those in the 100–200 kW range face 30% customs duty and 20% excise duty. Vehicles in the 200–300 kW range are taxed at 60% customs duty and 35% excise duty.

The report further states that multiple importers at Rasuwa and Tatopani customs cleared EVs by declaring peak motor power as 99.9 kW or exactly 100 kW, placing them in lower tax brackets, despite manufacturer catalogues and international listings indicating higher capacities, often in the 100–200 kW range or above.

Due to such misclassification, Rasuwa Customs alone is estimated to have lost around NPR 1.27279 billion in revenue, while Tatopani Customs lost approximately NPR 1.23552 billion, bringing the total estimated loss to NPR 2.5083 billion.

In another case, Zeekr X model vehicles were cleared under tariff code 8703.80.69 by declaring a peak power of 200 kW, but technical specifications show a capacity of approximately 200.06 kW. The report notes that these vehicles should have been taxed at the higher bracket (60% customs duty and 35% excise duty), and the incorrect classification resulted in a revenue loss of about NPR 196.73 million at Tatopani Customs alone.

Similarly, several models including Deepal, Jac J6, Avatr 11, and Xpeng were found to have capacities exceeding 200 kW but were still classified under the 100–200 kW category. This resulted in estimated revenue losses of NPR 90.42 million at Tatopani Customs and NPR 812.08 million at Rasuwa Customs, totaling approximately NPR 904.21 million.

The report also highlights that Nammi Box vehicles were incorrectly classified under tariff code 8703.80.59 by declaring a 50 kW motor capacity, although the manufacturer’s website and brochure indicate the actual capacity is around 70 kW. Even though these vehicles should fall within the 50–100 kW category, the report raises concerns over inadequate verification and assessment, estimating a revenue impact of around NPR 174.12 million in this case.

In another instance, X30 LEV passenger vans were cleared under tariff code 8703.80.29 with a declared 50 kW motor power, despite the absence of independent verification reports. Manufacturer specifications and listings from the NADA Auto Show indicate that the actual peak motor power is around 60 kW. This misclassification is estimated to have caused a revenue loss of approximately NPR 98.05 million.