Revenue fraud in Cymex: Rs 5 billion revenue may have been cheated

Kathmandu. The Department of Revenue has raided Cymex Inc., which imports BYD vehicles in Nepal. The department raided BYD’s official vendor company for Nepal and seized some documents.
According to the department, the company was raided on Wednesday and documents were seized after it was found that crores of revenue had been evaded in the initial investigation.
Earlier, the customs department had instructed the subordinate offices to be careful in passing the inspection of electric vehicles. The department has instructed to be strict about the increasing trend of evading revenue by showing vehicles with higher motor capacity on paper. Earlier, Revenue Secretary Ram Prasad Ghimire said that 5 billion rupees of revenue may have been cheated due to such a trend. In this way, Cymex was making a profit of up to 10 lakh rupees from a single vehicle.
Chakra Bahadur Budha, director general of the department, said that the documents have been recovered and further investigations are being carried out. The company, which is importing and selling Chinese EVs, has been in controversy since before. Earlier, the customs department has already paid a fine to him for tax evasion. This trend is the conclusion of the finance administration in ATTO III of BYD. Similarly, it is assumed that there is a similar trend in Omoda and Dipal cars. While importing vehicles with 150 KW capacity, they are being imported as 100 KW. Intermediaries have been active since Wednesday to stop the investigation of the Revenue investigation.
The Customs Department has instructed the subordinate offices to be careful in passing the check of electric vehicles. The department has instructed to be strict about the increasing trend of revenue evasion by showing vehicles with higher motor capacity on paper. The spokesperson of the department, Punyavikram Khadka, said that the subordinate offices have been instructed to consider from various aspects and work carefully while passing the examination. Electric vehicles such as BYD, Changan, and Omoda imported from China have less motor capacity than China. BYD’s EightoThree is available in China at 150 kW peak power (maximum motor capacity). While the pickup power of Eight three that comes to Nepal is only 99 kW. The company pays tax according to 99 kW.
Similarly, Dipal L07 and L07 of Changan are available in Nepal with 99 kW maximum motor capacity. The company produces L7 and S7 with a capacity of 185 and 175 kW respectively. Similarly, the motor capacity of the Omoda E5 coming to Nepal is 99 kW. E5 is available in 150 kW capacity in the international market. In the letter of the customs department, it is mentioned that when passing the inspection of electric vehicles, the documents including the capacity/peak power of the motor mentioned on the official website of the manufacturer company must be checked and confirmed to maintain the transaction value. According to the Customs Act and the Customs Check Pass Test Procedure, 2078, the test may be conducted even after the customs check pass. For this work, a customs inspection and examination office has been established.