Budget 2022 : EV Budget for Excise and Customs Duty Announced
Budget 2022 : EV Budget for Excise and Customs Duty Announced
The Nepal government has announced exemptions, reductions and additions on excise duty and customs duty for electric vehicles (EV) during the budget announcement of the Fiscal Year 2079/20 (2022/23). Finance minister Janardan Sharma Poudel announced increment on both excise duty and customs duty for EVs depending on their motor capacity.
Increment on EV Excise and Customs Duty
| Motor Capacity | Increased % |
| 100-200 kW | 30% |
| 201-300 kW | 45% |
| Above 300 kW | 60% |
Exemptions and Reductions on EV Excise and Customs Duty
In order to promote and encourage electric car assembling industries, EV manufacturing companies and car assembling industries are also getting exemptions and waivers on excise duty and customs duty. For the next 5 years, government has decided to exempt electric car assembling companies from paying income taxes (earnings) at a rate of 40%. Likewise, companies that construct combustion engine vehicles will also obtain a 50% excise duty waiver and a 25% customs duty exemption. Furthermore, electric scooter manufacturers will only be charged 1% tax.
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