Govt probes motorcycle CKD Scheme over Rs 15 billion tax loss – The Himalayan Times – Nepal’s No.1 English Daily Newspaper

KATHMANDU, MAY 13

The government has launched an investigation into motorcycle assembly operations run by several business houses under the Completely Knocked Down (CKD) scheme.

Government sources told The Himalayan Times that the inquiry is focused on how firms allegedly used loopholes in the industrial policy to secure tax benefits, causing an estimated revenue loss of more than Rs 15 billion over the past five years alone.

“These importers exploited policy loopholes, widened their margins and delivered little meaningful benefit to consumers or domestic manufacturing,” a source said.

According to officials, the government is looking into the CKD businesses of Golchha Organization, which assembles Bajaj motorcycles, MAW Group (Yamaha), Jagadamba Group (TVS), Syakar Trading (Honda), and CG Motocorp, which assembles Hero motorcycles.

“These are essentially import-led trading houses rather than vertically integrated manufacturers,” the source said. “In most cases, their assembly plants function as final-stage fitting units rather than genuine production facilities,” the sources explained.