Nepal's Finance Minister, Bishnu Paudel, has announced that the existing tax structure for electric vehicles (EVs) will remain unchanged for the fiscal year 2025-26. Despite the growing demand for EVs, the government has decided to maintain the current tax rates.
To encourage the growth of the EV industry, a customs duty of only 1% will be imposed on the import of equipment required for establishing industries that produce and assemble electric vehicle charging stations. These industries will also be granted an income tax exemption for five years.
While the decision provides policy stability to consumers and businesses in Nepal's growing EV sector, some stakeholders had hoped for further tax relief or additional incentives to accelerate EV adoption.
The current tax structure for electric vehicles in Nepal is as follows:
The decision to maintain the existing tax regime reflects the government's cautious approach as the EV market continues to develop in Nepal.
Nepal's government has decided to maintain the existing tax structure for electric vehicles (EVs) in the fiscal year 2025-26 budget, providing policy stability to the growing EV sector. The decision means that taxes and duties on EVs will remain unchanged, with customs duty ranging from 15% to 80% depending on motor capacity. The government has also announced a 1% customs duty on equipment for establishing EV charging stations, along with a five-year income tax exemption.