Motorcycle Luxury or Need?

Motor bike is a common vehicle in a Nepalese society, few decades back it was viewed as luxury goods, because it was only within the reach of few people. Today, due to the daily necessity of common masses, everyone aspires to have it. It is helping to ease everyday life of people in many ways, which allows increasing its number day by day. But still motorcycle has not been able to reach in the hands of many people who have its need.

We may have a question, why still motorbike is not within the reach of common people even having a desire to have it. The answer is clear, because one has to make a long plan and huge amount of investment to buy a motorbike. The super splendor motorbike, which cost 82000 Nrs in neighboring country India cost 169,500 in Nepal. The Pulsar motorbike which cost 117,411 Nrs in India costs 226,900 Nrs in Nepal. Whereas according to the World Bank, per-capital of Indians is USD 1581 at the same time Nepalese only have USD 701. Comparatively Indians per-capital is twice higher than the Nepalese people. But to buy a motorbike for a daily use, Nepalese have to pay double price than the Indians.

In most part of the Indian states, people only have to pay onetime renewal tax; there they are not reluctant to pay the renewal tax each and every year. In Nepal one has to pay 4040 Nrs Yearly renewal tax for 150 CC motorbikes. If we keep 150 CC motorbikes with us for 15 years, we are reluctant to pay 60400 Nrs only as a renewal tax, where as in India, we can buy a new motorbike if we add some more money on that tax amount.

Why are we forced to pay such a huge amount? Answer is clear, because still motorbike is viewed as luxury goods, due to this reason Nepal government charge high tax with its citizens. But it is not difficult for Nepalese people to understand if motorbike is luxury or necessity to us. It is not a new story that all state collects tax with its citizens, this is the only way states can run their activities. But it is more important how much tax should be forced to its citizens. It is not a sound idea to exploit own citizens and fill the state treasury. No nation can prosper making its own citizen poor. Including custom duty, Local tax, VAT, road tax and Vehicle tax Nepalese government collects around 127% taxation with its citizens, due to the reason motorbike is forced to remain expensive to us.

Let’s take an example of a milkman, who is compelled to sell his milk on a bicycle because he cannot afford to buy a motorbike. If he can sell his milk in a motorbike instead of bicycle, than he can be benefitted in many different ways. He will be able to sell more milk and earn more profit with less time and effort. He can give his leisure time to his shed, friends, family, neighbors, and entertainment or can engage in other income generating activities. His sound economic status means he will have choice; he will have a capacity to educate his children. Besides this, he and his family living standard and social status will also be uplifted. Due to the less effort he will remain healthy, which makes him capable to work longer.

It is clear, what is hindering on the growth of Nepalese citizens. It is necessary to collect tax with citizens to carry out the development activities of the state. But it doesn’t seem rational to exploit their resources to carry out those activities. Creating a favorable environment for investment & production, Implementing sound economic policies and rule of law, Nepal can carry out our development activities in a rapid pace. Which has been proved by our two giant neighbors India and China, who were living in a gutter of poverty 30-35 years back, if they can achieve it than why can’t we? Bikalpa wants state to see motorbike as a necessity rather than Luxury and reduce the taxation rate so every Nepalese can afford it without any difficulty.

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