EV duties to be based on value rather than motor capacity
Summary
Nepal's government will impose customs duty on electric vehicles based on their value rather than motor capacity starting fiscal year 2026-27 and introduce various tax reforms to support domestic production and business growth.
Key Points
- Customs duty on electric vehicles will be based on their value from fiscal year 2026-27 instead of motor capacity.
- A Clean Infrastructure Investment charge will support domestic EV production, charging stations, and battery management.
- Excise duties on cigarettes, liquor, and beer have been increased, while gold customs duty has doubled to 20 percent.
- Income tax exemption for individuals has been raised to Rs1 million and tax rates revised to reduce overall tax burden.
