Kathmandu – The government has not changed the tax rates on electric vehicles (EVs) for the upcoming fiscal year, according to the Financial Act presented alongside the new budget.
Despite widespread rumors and discussions about possible tax hikes on EVs, the government has kept taxes unchanged on all types of electric vehicles. Anticipating a tax increase, many traders had already imported a large number of electric cars in advance.
Finance Minister Bishnu Prasad Paudel announced that the existing tax structure on EVs will remain the same for the fiscal year 2082/83. He made this clear during his budget presentation at the joint session of the federal parliament on Thursday.
In the previous fiscal year (2081/82), then-Finance Minister Barshaman Pun had introduced the following tax rates:
Custom Duty:
Up to 50 kW: 15 percent
51 to 100 kW: 20 percent
101 to 200 kW: 30 percent
201 to 300 kW: 60 percent
Above 301 kW: 80 percent
Excise Duty:
Up to 50 kW: 5 percent
51 to 100 kW: 15 percent
101 to 200 kW: 20 percent
201 to 300 kW: 35 percent
Above 301 kW: 50 percent
In addition, a 5 percent road maintenance fee and 13 percent VAT apply to all vehicles.
These tax rates cover not only electric cars, but also electric microbuses, vans, hybrids, and petroleum-fueled vehicles.
Although there was significant discussion and speculation about reducing taxes on hybrid vehicles, Finance Minister Paudel decided not to revise the existing tax structure for any type of vehicle.
