In the recent budget announcement 16 Jestha 2080 for the year 2080-81, Nepal government has surprisingly increased the tax on affordable electric vehicles in Nepal. Therefore in this article, we will discuss in-depth on import tax increase for affordable EVs in Nepal.
Import Tax Increase for Affordable EVs in Nepal
According to the recent announcement from the Nepal government in Budget 2080/2081 for the Electric vehicles tax, there’s an increase in the import tax on electric vehicles. Whereas the import tax has majorly affected affordable electric vehicles with a motor capacity of 50-100KW as it received a 10% increase in Excise Duty and a 5% in custom duty.
Futhermore mid-range electric vehicles with a motor capacity of 101KW to 200KW seem to get a 10% decrease in excise duty and a 10% decrease in customs duty. Whereas high-range electric vehicles also get a 5% decrease in customs duty. Additionally, the premium electric vehicles seem to get no increase in import tax.
Electric Vehicles (EV) Tax Changes in Nepal – Budget 2080/81
| Motor Capacity | Budget 2079-2080 | Budget 2080-2081 | Tax Changes |
| 50 KW | 0% (Excise Duty) 10% (Customs Duty) | 0% (Excise Duty) 10% (Customs Duty) | no change |
| 50 – 100 KW | 0% (Excise Duty) 10% (Customs Duty) | 10% (Excise Duty) 15% (Customs Duty) | +15% |
| 101 – 200 KW | 30% (Excise Duty) 30% (Customs Duty) | 20% (Excise Duty) 20% (Customs Duty) | -20% |
| 201 – 300 KW | 45% (Excise Duty) 45% (Customs Duty) | 45% (Excise Duty) 40% (Customs Duty) | -5% |
| Above 301 KW | 60% (Excise Duty) 60% (Customs Duty) | 60% (Excise Duty) 60% (Customs Duty) | no change |
What does the increase in TAX on 50 – 100 KW Electric Vehicles mean?
The increase of 10% excise duty and 5% of customs duty on affordable electric vehicles with a motor capacity of 50-100KW by the Nepal government. Reflects the general public can expect the most popular EV vehicles in Nepal such as Tata Nexon EV, Hyundai Kona EV, Neta V, and more affordable EV vehicle’s retail prices to be increased by around 15-20% in Nepal.
Why Tax Rate on 50-100KW EV Increased?
As we all know the demand for Electric vehicles has drastically increased in Nepal whereas EV imports in Nepal have seen a spike with 2882 units imported under the 50-100KW motor capacity electric vehicles according to the Department of Customs. Therefore the government of Nepal has missed out on an opportunity to collect a huge sum of tax from the import.
Does this import tax increase affect Electric Bikes and Scotter?
Most of the popular electric scooters such as Segway and electric bikes such as Yatri in Nepal come under 2KW or lower. Therefore the increase in tax on affordable electric vehicles doesn’t affect electric bike and electric scooter prices in Nepal.
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BTW What are your thoughts on the Import Tax Increase for Affordable EVs in Nepal? Do comment below.
