Budget 2021/22: Government Reduces Customs Duty On EVs

The government has revised the customs duty on electric vehicles. Hon. Finance Minister Bishnu Prasad Poudel has fixed the customs rate from 10 percent to 40 percent through the budget of the Fiscal Year 2078/07 depending upon the motor capacity. The excise duty on electric vehicles has also been completely waived in the budget of the Fiscal Year 2078/79 B.S.The financial ordinance has announced 10 percent customs duty on electric cars, jeeps and vans up to 100 kW capacity, 15 percent on vehicles from 100 kW to 200 kW capacity, 30 percent on vehicles with 200 to 300 kW capacity, and 40 percent on vehicles above 300 kW capacity.According to the earlier budget presented by Dr. Yubaraj Khatiwada, the excise duty on electric cars was raised to 40-80% depending upon their peak power. Electric cars with peak power ranging between 50-100kW bore an excise duty of 40%, 50% if it's between 100-150kW and 60% for 150-200kW. And, to make matters worse, the government slapped an extra 80% customs duty with 50% reimbursement. This was further subjected to 13% VAT and a 5% road toll.Also Read: Budget 2021/22: Shift to Fully Electric Vehicles By 2088 B.S. (2031 A.D.)