Nepal Automobile Dealers Association on Thursday staged a protest at Maitighar Mandala in Kathmandu demanding the government create a conducive environment for vehicle import and sale.

Automobile dealers took to the street saying that a policy by the Nepal Rastra Bank has hindered their businesses although the government lifted the ban on the import of automobiles.

Dhruba Thapa, president of the Nepal Automobile Dealers Association, said that although the import of vehicles was lifted, the provision that requires maintaining a 50 percent cash margin with banks to open letters of credit should be removed.

Similarly, businessmen have demanded that banks and financial institutions reduce interest rates. Even if the ban on the import has been lifted, no one will buy vehicles at the inflated interest rates, said Thapa.

“We will be forced to resort to more protest programmes if the government doesn’t address our demands put forth through peaceful protests,” he warned.

The government on Tuesday decided to lift the seven-month-old ban on the import of “luxury goods” including automobiles to meet a condition of the International Monetary Fund (IMF) ahead of the formation of a new government.

Automobile dealers had been constantly saying that the import ban was choking their businesses.

“More than 75 car showrooms have shut down. Another 70 are on the verge of closing,” Thapa told the Post in a recent interview.