Kathmandu, Jestha 15 – The Government of Nepal has announced no changes in tax rates for electric vehicles (EVs) in the budget for the upcoming fiscal year 2082/83. Despite widespread speculation about potential tax hikes on EVs, Finance Minister Bishnu Prasad Paudel clarified in his budget speech to the joint session of the federal parliament that existing tax rates will remain unchanged.

In recent weeks, there had been a surge in EV imports, driven by rumors that taxes might increase. However, the government’s decision to maintain current rates has now put those concerns to rest.

Current Tax Structure on Electric Vehicles (Carried Over from FY 2081/82):

Battery Capacity (kW)	Customs Duty	Excise Duty
Up to 50 kW	15%	5%
51–100 kW	20%	15%
101–200 kW	30%	20%
201–300 kW	60%	35%
Above 300 kW	80%	50%

Additionally, all EVs are subject to:

5% road maintenance fee
13% Value Added Tax (VAT)

No Changes for Hybrid and Petroleum Vehicles Either

The finance minister also did not make any changes to the tax rates on hybrid, micro vans, vans, or petroleum-powered vehicles. Speculation had been rife that hybrid vehicles might receive a tax cut, but the government opted to maintain uniformity across all categories.

This move reflects the government’s intent to ensure policy stability rather than introduce frequent changes. While some had hoped for greater incentives for EV adoption, the focus appears to be on continuity and predictability, helping importers and consumers make clearer decisions.