Revised tax slabs threaten EV boom in Nepal
Summary
Nepal's new tax policy for electric vehicles introduces a Clean Infrastructure Investment Fee varying from 2.5% to 130%, significantly increasing EV prices and raising concerns of thwarting the country's clean transport transition.
Key Points
- The new tax policy replaces excise duty with a Clean Infrastructure Investment Fee (CIIF) ranging from 2.5% to 130% based on customs value.
- Electric vehicle prices in Nepal may increase by Rs200,000 to over Rs10 million depending on the model due to the revised tax slabs.
- Dealers and industry leaders criticize the revised tax system for creating uncertainty and for imposing steep tax jumps that could discourage premium EV imports.
- Former energy minister Kulman Ghising states that the policy undermines national goals for clean energy use and EV adoption.
