Kathmandu, May 30: The government has introduced several significant policy changes related to electric vehicles (EVs) through the budget for the upcoming fiscal year, including reforms to the tax system, customs structure, and EV infrastructure development.
It has also announced a new “Clean Infrastructure Investment Fee” and measures to expand charging facilities and promote the electrification of public transport.
Previously, customs duties on electric vehicles were determined based on peak power capacity. Under the new policy, that system has been scrapped and replaced with a value-based taxation model. The government says taxes will now be calculated according to the actual value of the vehicle rather than its power output.
To support domestic EV production, charging infrastructure, and battery management, the government has introduced the new Clean Infrastructure Investment Fee. According to the budget, the fee will be collected at customs points on imported electric vehicles and electric transport equipment entering Nepal.
For EVs manufactured within Nepal, the fee will be collected by the registration office at the time of registration based on the vehicle’s production cost. The collected amount will be deposited into the federal treasury.
The budget also provides tax exemptions on imported parts and auxiliary materials used by industries registered to manufacture electric rickshaws in Nepal. Likewise, industries producing or assembling EV charging machines will be eligible for Value Added Tax (VAT) exemptions on imports upon recommendation from the Department of Industry.
The government has also adopted a policy of granting a zero-tax rate on deep-cycle lead-acid batteries produced domestically for use in electric vehicles, subject to recommendation by the Department of Environment under the Ministry of Forests and Environment. The measure is aimed at encouraging local manufacturing and supporting Nepal’s EV industry.
Expanding charging infrastructure has also been made a priority. The budget states that petrol pumps will be encouraged to install EV charging stations with minimum required facilities. With electric vehicle adoption growing rapidly in Nepal, the government says greater charging capacity is needed and plans to attract private-sector investment in the sector.
The budget further includes plans to gradually transition public transportation to electric mobility. In the Kathmandu Valley, the government plans to launch a “Smart Urban Mobility” program featuring electric public buses, charging stations, and smart bus parks. Similarly, in the Pokhara Valley, an e-mobility service will be introduced with the goal of replacing conventional public buses with electric ones.
The new policies are being viewed as part of the government’s broader strategy to promote environmentally friendly transportation and reduce dependence on petroleum products. However, changes to the customs structure and the introduction of the new fee have raised questions among consumers and market participants about their potential impact on EV prices.
People’s News Monitoring Service
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