OPINION: 1 Step Forward, 3 Steps Back [81/82 Vehicle Tax]

During the budget presentation of 2081/82, Finance Minister Barshaman Pun announced a 5 to 20% tax increase, with higher powered EVs getting a bigger tax slap. 

While much of the World move forward in adopt progressive policies, not just in electrification of cars but also other forms of transport, Nepal seems unable to adopt a consistent policy decision as some years we decrease a (rightful) decrease in tax burden while some year consumers are punish for making progressive decision that the government itself should be incentivising. 

The Road Development Fund and VAT remain the same, but Custom duty and Excise duty have increased. 

These new tax rates are expected to increase the cost of all popular EVs, placing a higher burden on those already owning EVs and disincentivizing potential new owners from moving on to new high tech EVs.   

Our future depends on the decisions we make today. Let’s ensure they are the right ones.