On Ashar 15, finance minister Prakash Sharan Mahat has released the Nepal government budget for the fiscal year 2080/81 where he has changed the Electric Vehicle Tax Rate in Nepal. In this budget, finance minister Mahat has added one more category the EV-Lineup and chnaged the tax rate; the tax rate for some vehicles has been increased and for otherss has been decreased by some percent.
New EV Tax Rate in Nepal
0 KW to 50 KW Electric Vehicles
The tax for electric vehicles up to 50KW has been made same as of previous year. According to the budget, 10% customs duty will be levied on Electric Vehicles in this category, previously, this tax for for EVs upto 100KW. This is the new category added in the lineup.
50 KW to 100 KW Electric Vehicles
According to the new budget of 2080/81, the government has increased customs and excise tax on electric vehicles between 50 KW and 100 kilowatts by 5% and 10% respectively. Vehicles in this motor power category will now have to pay 15% customs tax and 10% excise duty. Previously, these vehicles did not have to pay excise duty.
This category includes the most popular Electric Vehicles, which will directly affect the general public interested in buying EVs.
101 KW to 200 KW Electric Vehicles
Ironically, Tax on Electric Vehicles between 101 KW and 200 kilowatts, however, has decreased drastically. Both the customs tax and excise duty tax in this range has gone down to 20 per cent. Now there is a 10% decrease in both excise and customs duty tax for EVs in this powertrain. In the previous year budget, both customs and excise duty were set at 30%.
201KW to 300 KW Electric Vehicles
The government has decreased customs duty by 5% and has levied a 40 per cent customs duty on electric vehicles with the capacity of 201 KW to 300 kilowatts. Earlier, it was 45 per cent customs duty. The Excise duty for electric vehicles in this powertrain has not been changed and has been set to 45% in the fiscal year 2080/81. Excise duty remains constant at 45 per cent on electric vehicles for this range.
301 KW and Above Electric Vehicles
The customs duty for vehicles with a capacity of more than 300 kilowatts motor has been maintained at 60 to 80 per cent. Earlier, the rate was set at 60 per cent. Excise duty is 60 per cent for Electric Vehicles in this range.
All the new tax rate for electric vehicles has presented in the table below in detail:
| PowerTrain | Customs Duty (2079/80) | Customs Duty (2080/81) | Excise Duty (2079/80) | Excise Duty (2080/81) |
|---|---|---|---|---|
| Upto 50 KW | 10% | 10% | 0% | 0% |
| 51 KW to 100 KW | 10% | 15% | 0% | 10% |
| 101 KW to 200 KW | 30% | 20% | 30% | 20% |
| 200 KW to 300 KW | 45% | 40% | 45% | 45% |
| 30 KW and Above | 60% | 60% – 80% | 60% | 60% |
What is the tax rate for 100 KW Electric Vehicle in Nepal?
According to the new budget, the tax rate for 100 KW Electric Vehicle is 15% Customs Duty and 10% Excise Duty.
What is the new tax rate for 50 KW Electric Vehicle in Nepal?
According to the new budget, the revised tax rate for 50 KW Electric Vehicle is 10% Customs Duty and there is no any Excise Duty.
