Nepal's Poor Pay for Indulgences of the Rich

The odds are stacked against Nepal's poor people.

- BISHAL THAPA

Not only do they need to overcome the hardships of life and eke out a living, but they also need to pay for the rich to indulge in their luxuries. Like, cars for instance - electric cars to be precise.

Poor tax policies on electric vehicles in Nepal have helped advance the interests of the rich while sacrificing the benefits of the poor.

Many countries around the world are rapidly switching to electric vehicles. The International Energy Agency, an autonomous intergovernmental energy think tank, forecasts that electric vehicles sales will touch 20 million in 2025, representing approximately 20 per cent of the new vehicle market share.

Like the rest of the world, Nepal is also seeking to transition from petrol and diesel (or internal combustion engines) to electric vehicles. It has announced an ambitious goal to phase out ICE vehicles with electric ones by 2031.

Electric vehicles offer significant environmental benefits. They avoid the use of petrol and diesel, both high-emission fossil fuels. This transition will reduce greenhouse gas emissions, and more importantly for Nepal, lower local air pollution.

Electricity sold in Nepal, except for Indian imports that will be used for electric vehicles, comes from hydropower, which has zero emissions. Since Nepal imports all its petrol and diesel, reducing its use will also improve energy security and reduce supply vulnerabilities.

Nepal must undoubtedly transition to electric vehicles. Government policies that encourage that shift should be endorsed and welcomed.

The question is who should pay for those policies. Unfortunately, in Nepal, the poor are bearing that burden—they are paying for rich people to enjoy the benefits of vehicle ownership.