Lately, there has been some good news for electric vehicle enthusiasts in Nepal. After presenting the budget plan for the fiscal year 2078/79 BS on Saturday, 29 May by the Finance Minister Bishnu Poudel, Nepal Government has waived the tax which was imposed on EVs last year.
In the previous year, Finance Minister Yubaraj Khatiwada imposed 30-80% excise duties depending on the vehicles’ peak power. There were added custom duties which were increased by 80%, spiking the total price by 90-120%. This move came just as Nepal was beginning to see a rise in the popularity of electric vehicles. According to the new Budget Plan, taxes on electric vehicles are now down to 10%. It was also announced that renewal and road taxes will be waived for five years if a petroleum vehicle switches to battery-powered vehicles.
This move comes as a result of the government seeking to go completely petroleum vehicle-free by the year 2031. This move might also have been taken to reduce air pollution issues which recently affected the country causing numerous health problems and schools to shut down. Nevertheless, keep an eye out! We will definitely see a rise in the import of new EV models from four and two-wheeler brands in the near future.