October 4: The government has intensified market monitoring against small-scale businesses but is itself involved in massive irregularities including the promotion of syndicate system while importing vehicles. The government has given entrepreneurs a chance to amass hefty amount by adopting a policy to support syndicate system since a decade.

The government had introduced provisions to import vehicles by making special arrangement in the Finance Act.

As per the provision, only the manufacturer of the vehicles or the authrised distributor can import vehicles into the country. Taking advantage of this provision, the distributors have been making good profit from the sales of the vehicles.

Stakeholders have complained that the authorised distributors have been charging exorbitant prices for the vehicles due to the monopoly they enjoy in importing vehicles.

Communications Officer at the Department of Customs Kul Raj Gyawali informed that only the authorised distributor can import vehicles into the country as per the existing rules. Gyawali claimed that such provision was necessary for the proper management and monitoring of imported vehicles. The government introduced the controversial provision by amending the Finance Act between 2016-2067.

Analysts say that the government has promoted monopoly by amending the act. Earlier, anyone could have imported vehicles by fulfilling the due processes. Unlike the restriction in importing vehicles, there isn’t any such provision in importing other products.

Since others cannot import vehicles except the authorised distributors, they have been charging exorbitant fees for the vehicles. It has been found that the distributors make up to Rs 1 million profit by selling a single vehicle.

Customs officials say that the distributors set the price at their will as there is no clear legal provision on the price ceiling although the provision has made it mandatory to update the price list every four months.

The government has been supporting the syndicate system since the importers pay income tax from the profit. The government has been imposing high rate of tax from imported vehicles. The government charges 230 percent tax on vehicles imported from India and 225 percent tax on vehicles imported from third countries.