EV Tax Rates in Nepal (2025/26 - 2082/83)
EV Nepal
· Dec 4, 2025
The government of Nepal has revised the tax structure for electric vehicles (EVs) in the budget for the Fiscal Year 2082/83 (2025/26). Understanding these tax slabs is crucial for calculating the final price of an EV in Nepal. This guide provides the latest breakdown of Customs Duty, Excise Duty, and VAT.
Key Update for 2025/26: The government has increased customs and excise duties on entry-level EVs (up to 50kW) and mid-range EVs (51-100kW), which were previously enjoying the lowest tax brackets. VAT remains at 13% for all categories.
Tax Structure for Private Electric Vehicles (Cars, Jeeps, Vans)
| Motor Peak Power (kW) | Customs Duty | Excise Duty | VAT | Road Development Fee |
|---|---|---|---|---|
| Up to 50 kW | 15% | 5% | 13% | 5% |
| 51 kW to 100 kW | 20% | 15% | 13% | 5% |
| 101 kW to 200 kW | 30% | 20% | 13% | 5% |
| 201 kW to 300 kW | 60% | 35% | 13% | 5% |
| Above 300 kW | 80% | 50% | 13% | 5% |
Tax for Electric Two-Wheelers (Scooters & Bikes)
Electric scooters and bikes continue to enjoy significant tax benefits to promote cleaner urban mobility.
- Customs Duty: 10% (General Rate)
- Excise Duty: 0% (Waived)
- VAT: 13%
- Road Tax: Waived or minimal depending on province.
Annual Road Tax for EVs (FY 2082/83)
Unlike petrol/diesel vehicles which pay varying rates based on engine cc, EVs pay a flat rate based on motor power. (Note: Rates may vary slightly by Province).
| Motor Power | Annual Tax (Approx.) |
|---|---|
| Up to 49 kW | Rs. 10,000 |
| 50 kW to 125 kW | Rs. 15,000 |
| 126 kW to 225 kW | Rs. 20,000 |
| Above 225 kW | Rs. 30,000 |
Why did EV prices increase?
The Finance Bill 2082 introduced a hike in customs duty for entry-level EVs (up to 50kW) from 10% to 15%, and for the popular 51-100kW segment from 15% to 20%. This has led to a price increase of approximately Rs. 1.5 Lakhs to Rs. 4 Lakhs for popular models like Tata Tiago EV, BYD Dolphin, and MG Comet.
Disclaimer: Tax rates are subject to change by the Government of Nepal. While we strive to keep this data accurate, please consult official customs documents or authorized dealers for the most precise information. Last updated: December 2025.