Nepal continues to promote electric vehicles (EVs) with significantly lower import taxes compared to petrol/diesel vehicles, supporting the national target of 80% EV adoption by 2030. As of December 2025 (FY 2082/83), EV tax rates remain unchanged from the previous year—no hikes or reductions. EVs enjoy automatic tax incentives through reduced duties, making them far more affordable than ICE vehicles (often 200-250% higher taxes on petrol cars).
Key Benefits:
- Lower customs & excise duties based on motor power (kW).
- No direct subsidies, but incentives for charging infrastructure (1% customs on equipment + 5-year income tax exemption for manufacturers).
- Current EV market share: ~76% of new passenger vehicles—second highest globally after Norway.
Taxes apply during import (handled by distributors). Buyers pay the final showroom price reflecting these benefits.
EV Import Tax Rates 2025 (Four-Wheelers)
Taxes are tiered by peak motor power (kW). All EVs also pay:
- 13% VAT (on CIF + Customs + Excise)
- 5% Road Development Tax (on CIF value)
| Motor Power (kW) | Customs Duty | Excise Duty | Total Primary Duties |
|---|---|---|---|
| Up to 50 kW | 15% | 5% | 20% |
| 51–100 kW | 20% | 15% | 35% |
| 101–200 kW | 30% | 20% | 50% |
| 201–300 kW | 60% | 35% | 95% |
| Above 300 kW | 80% | 50% | 130% |
How Taxes Are Calculated (Cascading):
- Customs Duty: On CIF (Cost + Insurance + Freight).
- Excise Duty: On (CIF + Customs).
- VAT: On (CIF + Customs + Excise).
- Add 5% Road Tax on CIF.
Example: A Rs 20 lakh CIF EV (51-100 kW) might land at Rs 28-32 lakhs total—vs. Rs 45-55 lakhs for a comparable petrol car.
Comparison: EVs vs. Petrol/Diesel Vehicles
Petrol vehicles face much higher rates (plus 2% Infrastructure Tax on CIF):
| Category | Customs Duty | Excise Duty |
|---|---|---|
| Petrol Up to 1000cc | 40% | 20% |
| 1001–1500cc | 60% | 35% |
| 1501–2000cc | 70% | 50% |
| Above 2000cc | 80% | 80% |
EVs save buyers lakhs—especially in popular 50-200 kW segments (e.g., BYD Atto 3, Tata Nexon EV, MG ZS EV).
Other EV Policies & Incentives (2025)
- Charging Infrastructure: 1% customs duty on equipment for charging station setup; full income tax exemption for 5 years on related industries.
- Public Transport: Lower rates for electric buses/vans.
- Annual Road Tax: Preferential lower rates for EVs (e.g., Rs 10,000-30,000 vs. higher for ICE).
- No Buyer Application Needed: Incentives are automatic on import—no forms or rebates for individuals.
- Infrastructure Growth: 400+ public charging stations; government encouraging private investment.
Tips for EV Buyers in Nepal
- Most popular EVs fall in 50-200 kW range—enjoying the best tax savings.
- Prices stable due to unchanged rates; check authorized dealers for latest showroom costs.
- Long-term savings: Zero fuel costs + lower maintenance offset any upfront tax.
Rates confirmed unchanged in the FY 2082/83 budget (announced May 2025). For official details, refer to Ministry of Finance (mof.gov.np) or Department of Customs (customs.gov.np). Policies may evolve—consult dealers for your specific model. Go electric for savings and sustainability!
Green : This color on the map means the charging station has both CCS and GBT chargers available. It indicates a versatile station that supports multiple fast-charging standards.
Red : This color shows that the charging station has only CCS chargers. Look for this if you need a CCS-compatible electric vehicle.
White : This color indicates that the charging station has only AC chargers. It’s ideal for slower charging options, often found at standard stations.
Blue : This color marks a charging station that has only GBT chargers. It’s commonly used in regions where GBT is the standard.
Black : This color represents a charging station with only 15A Plug chargers. These are typically for basic, low-power charging needs.
