MAW Group Rejects Allegations of Customs and Tax Evasion, Calls Claims Misleading and Malicious

The MAW Group has issued an official statement rejecting all allegations related to customs duty evasion, VAT fraud, and tax evasion, describing them as baseless, misleading, and driven by malicious intent.

The allegations were reportedly submitted to the Office of the Prime Minister and Council of Ministers on Baisakh 25, 2083 B.S. (May 8, 2026) through complaint registration number 6384. 

According to the company, the complaint lacks any concrete evidence, factual basis, or legal grounds and was intended to mislead the Prime Minister’s Office while deliberately harming the company’s business reputation.

MAW Group stated that conducting a “media trial” against industrialists and businesses solely based on unverified complaints is inappropriate and could negatively impact the overall business environment by discouraging entrepreneurs and weakening investor confidence. 

According to the group, such practices can have serious long-term consequences for Nepal’s business environment and create uncertainty within the private sector, ultimately affecting economic growth and business stability in the country.

Company Denies Customs Evasion Allegations

MAW Vriddhi Commercial Vehicles Pvt. Ltd., which imports Foton-branded electric vehicles, clarified that all EV imports have been conducted legally under internationally recognized HS codes.

The company stated that all required customs procedures were completed and all duties determined by customs authorities were fully paid.

The company explained that during the fiscal year 2080/81, the Office of the Auditor General classified certain imported EVs under different HS codes and raised an audit observation. MAW Group emphasized that this was an administrative audit issue rather than customs evasion.

According to the statement, the company has already filed a writ petition (0082-WO-0179) at the Supreme Court regarding the matter. The court reportedly issued an interim order on 2082/05/08 instructing authorities not to implement the customs office’s correspondence until further notice, and the order remains in effect.

MAW Group argued that portraying the matter as a criminal offense while the case is still under judicial consideration amounts to direct interference in the judicial process.

The company also noted that the issue is not unique to MAW Group, claiming that several importers dealing in similar vehicles have faced comparable classification-related audit disputes.

Clarification Regarding Morang Auto Works

Addressing allegations related to VAT evasion linked to a 2067 BS report, MAW Group stated that Morang Auto Works had already settled all tax liabilities, interest, and penalties as per final and revised tax assessment orders issued by the Inland Revenue Department and Large Taxpayer Office for fiscal year 2067/68.

The company further clarified that claims suggesting Morang Auto Works has been shut down are “completely false and misleading,” stating that the company still exists and remains operational.

MAW Group Highlights Compliance and Contributions

MAW Group stated that all companies under the group operate under Nepal’s prevailing laws and regulatory frameworks while regularly fulfilling VAT, income tax, and other tax obligations on time. The group also denied involvement in any activities that could attract criminal liability.

The company highlighted that it is among Nepal’s highest taxpayers and has received multiple recognitions from government agencies over the years.

It specifically mentioned that MAW Hire Purchase Pvt. Ltd. was honored by the Inland Revenue Office in Biratnagar for being the highest income tax-paying company in the service business category for two consecutive fiscal years — 2079/80 and 2080/81.

MAW Group also emphasized its contribution to Nepal’s transportation sector through the import and distribution of modern vehicles equipped with advanced technologies.

According to the statement, the group has generated employment for more than 5,000 people directly and indirectly across the country and contributed over Rs 11.5 billion in revenue to the state so far.