Kathmandu-Finance Minister Dr. Swarnim Wagle has announced new tax rules for electric vehicles (EVs) in the budget for fiscal year 2026-27.

The government has removed the excise duty on electric vehicles. It has also ended the tax based on motor peak power for electric cars.

Instead of excise duty, the government will now charge a 'Clean Infrastructure Investment Fee.'

At the same time, a 20 percent customs duty will apply to all electric vehicles. This tax will be charged on the value declared at customs (CIF value).

New Tax Rates for Electric Vehicles
Vehicles worth up to Rs. 2 million:2.5 percent Clean Infrastructure Investment Fee

Vehicles worth more than Rs. 3 million up to Rs. 4 million:15 percent Clean Infrastructure Investment Fee

Vehicles worth more than Rs. 4 million up to Rs. 5 million:70 percent Clean Infrastructure Investment Fee

Vehicles worth above Rs. 5 million:110 percent Clean Infrastructure Investment Fee

The government said this fee will be calculated based on the customs value of the vehicle, including customs duty.