Authorities have seized 775 electric vehicles imported from China through the Korala border point in Mustang district amid an investigation into a suspected leak of budget-related tax changes.

The vehicles were detained during overnight inspections along the Mustang-Kaski road corridor from Wednesday night to Thursday morning. None had registration plates.

Officials suspect importers may have rushed customs clearance before higher taxes on electric vehicles announced in the budget for the fiscal year 2026-27 came into effect.

A government official said agencies were mobilised after receiving information suggesting customs officials, clearing agents, and traders may have colluded to bring in the vehicles before the budget announcement.

Large numbers of electric vehicles entered Nepal through several border points in the days leading up to the budget, which revised tax rates on EV imports.

According to a Home Ministry official, the vehicles brought through the Korala border point were being transported to different parts of the country when security personnel intercepted them following a tip-off.

An official at the Armed Police Force headquarters said personnel were deployed overnight along the Korala route and seized the vehicles during the operation.

Authorities are preparing to hand the vehicles over to customs offices for further investigation.

Deputy Inspector General Dipendra Shah, chief of the Armed Police Force’s Muktinath Brigade Headquarters in Gandaki Province, said the investigation was ongoing and the vehicles would be handed over to customs authorities once preliminary inquiries are completed.