In a significant move for Nepal’s electric mobility sector, the government has announced that it will not increase taxes on electric vehicles (EVs) in the upcoming fiscal year 2082/83. The announcement was made by Deputy Prime Minister and Finance Minister Bishnu Poudel during his presentation of the annual budget in the joint session of the Federal Parliament on Thursday.
According to Minister Poudel, all existing taxes on electric vehicles will remain unchanged to promote the adoption of EVs and reduce environmental pollution. He emphasized that the use of EVs helps increase the consumption of domestically produced electricity, thereby supporting national energy self-reliance and sustainability.
The decision to maintain the current tax rates comes after weeks of speculation in the automobile sector that the government might raise import duties on EVs. This uncertainty had led to a sharp rise in EV imports as dealers scrambled to bring in vehicles ahead of the budget announcement.
Incentives for EV Charging Infrastructure
In a further push to support the electric vehicle ecosystem, the government has also introduced tax incentives for companies involved in the production and assembly of EV charging stations. As per the new budget, equipment imported for the establishment of EV charging station manufacturing or assembly plants will be subject to only 1% customs duty. No other taxes will be levied on such imports.
This policy is expected to encourage both domestic and foreign investment in EV infrastructure, particularly in the development of local manufacturing and assembly capabilities for charging equipment — a crucial component in the mass adoption of electric vehicles in Nepal.
With these announcements, the government has sent a strong message that it is committed to supporting sustainable and clean transportation. By stabilizing the tax structure and incentivizing local infrastructure development, Nepal aims to position itself as a forward-looking market for electric mobility in South Asia.
