Govt Raises Taxes on Electric Vehicles in Nepal for FY 2081/82

HIGHLIGHTS

The government has increased taxes on electric vehicles in the budget for the fiscal year 2081/82.
Both customs and excise duties have been revised based on the motor capacity.
There is about 5% to 20% increase in the respective motor category.

Govt has raised the tax rates on electric vehicles for the fiscal year 2081/82.

Finance Minister Barshaman Pun has presented the Budget 2080/81 with the expected revision on tax duties on EVs for the upcoming fiscal year.

Both customs duty and excise duties have been revised based on the motor capacity. So far, the categories have been divided across Below 50kW, 100kW, 200kW, 300kW, and Above 301kW.

Government Raises Taxes on Electric Vehicles in Nepal

Here is a breakdown of the EV taxes past and present.

Motor Capacity	Customs Duty — OLD	Excise Duty — OLD	Customs Duty — NEW	Excise Duty — NEW
0 – 50kW	10%	0%	15%	5%
51kW – 100kW	15%	10%	20%	15%
101kW – 200kW	20%	20%	30%	20%
201kW – 300kW	40%	45%	60%	35%
301kW and Above	60%	60%	80%	50%

*Road Development Fund (RDF) and 13% VAT remain the same.

Under 50kW Motor: The tax rate has been increased by 5% for both Customs and Excise. This brings the Customs Duty to 15% from 10% and Excise Duty to 5% from 0%.

51kW to 100kW Motor: The tax rate has been increased by 5% for both Customs and Excise. This brings the Customs Duty to 20% from 15% and Excise Duty to 10% from 15%.

101kW to 200kW Motor: The tax rate has been increased by 10% for Customs only. This brings the Customs Duty to 30% from 20% and Excise Duty remains at 20%.

201kW to 300kW: The tax rate has been increased by 20% for Customs and decreased by 10% for Excise Duty. This brings the Customs Duty to 60% from 40% and Excise Duty to 35% from 45%.

Above 300kW: The tax rate has been increased by 20% for Customs and decreased by 10% for Excise Duty. This brings the Customs Duty to 80% from 60% and Excise Duty to 50% from 35%.