Government Could Provide Tax Benefits On Electric Vehicles

A meeting of the Council of Ministers held today has decided to provide even more subsidies to electric vehicles to reduce the consumption of petroleum products. With this decision, there could be some relief in the taxation structure of electric vehicles.

The government has decided to use options including giving more discounts to electric vehicles to reduce the consumption of petroleum products.

The budget for the fiscal year 2079/80 brought by the government had increased the tax on electric vehicles. Hon. Finance Minister Janardan Sharma Poudel had increased both excise duty and customs through the budget of the Fiscal Year 2079/80 depending upon the electric motor power.As of now, electric cars making 100 kW to 200 kW attract a 30 percent excise and customs duty, 45 percent excise and customs on electric cars making 201 to 300 kW capacity, and 60 percent excise and customs on electric cars above 300 kW capacity.Watch this space for more updates.