- Budget 2080/81 levied additional import duty charges on EVs under the 100kW Category.
- Popular mid-segment EVs will increase in price by 15-20%.
- However, there is a decrease in duty charges on EVs above the 100kW Category.
The Government unveiled the new Budget for 2080/81 yesterday.
This will bring new price changes for the four-wheeler EVs in Nepal. According to the new policies, the EV prices for categories under 50kW-100kW, 100kW-200kW, and 200kW-300kW will be affected.
Interestingly enough, the Government has increased the tax for the 50kW-100kW category EVs. Whereas, the tax on 100kW-200kW and 200kW-300kW categories have been decreased.
EV Tax Changes in Nepal
50 kW to 100 kW
10% excise duty and 15% customs duty will be levied on EVs in this category. Previously, there were no excise charges and customs duty was capped at 10%.
This category includes the most popular EV products, which will directly affect the general public.
101 kW to 200 kW
20% excise duty and 20% customs duty will be levied on EVs in this category. It gets a 10% decrease on both excise and customs duty.
201kW to 300kW
45% excise duty and 40% customs duty will be levied on EVs in this category. The custom charges have been reduced by 5%.
Premium EVs will likely decrease the price by 5%.
301kW and Above
It remains the same as before, getting 60% excise duty and 60% customs duty.
Please reference the following table for new tax changes in EVs in Nepal for 2023/24.
|Motor Capacity||Budget 2080/81||Budget 2079/80|
|50 kW to 100 kW||10% Excise Duty – 15% Customs Duty||0% Excise Duty – 10% Customs Duty|
|101 kW to 200 kW||20% Excise Duty – 20% Customs Duty||30% Excise Duty – 30% Customs Duty|
|201 kW to 300 kW||45% Excise Duty – 40% Customs Duty||45% Excise Duty – 45% Customs Duty|
|Above 301 kW||Same as Before||60% Excise Duty – 60% Customs Duty|
Why Increase Tax on 100kW EVs?
According to data released by the Department of Customs, Nepal imported a total of 2995 units worth 8.41 Arba of electric four-wheelers from mid-July 2022 to mid-May 2023.
As per the data, the EVs under the 50-100kW category had significant imports.
Coming in at 2882 units of EVs (under 50kW-100kW), 66 units of EVs (under 100kW-200kW), and 7 units of EVs (under 200kW-300kW).
Going by the statistics, the Govt has lost the opportunity to collect significant revenue from EV imports in the 50kW-100kW category.
Perhaps, the Budget 2080/81 looks to balance the EV imports across its categories and improve revenue collection.
That may be one of the reasons to increase the duty charges on EVs under the 50kW-100kW category and decrease duty charges on other EVs categories with higher-powered motors.