EV Taxes Unchanged in New Budget to Promote Green Transport

The government has decided not to change the current taxes on electric vehicles (EVs) in the budget for the fiscal year 2025/26.

Finance Minister Bishnu Prasad Paudel announced on Wednesday that keeping the same tax rates on EVs will help promote the use of environmentally friendly transport.

There had been rumors that the government might raise customs duties on EVs, which led to a rush in EV imports and crowding at the Chobhar dry port.

In the new budget, companies that assemble electric vehicles and those importing tunnel boring machines from the private sector will continue to pay just 1% customs duty.

Also, VAT has been removed from digital payment systems, and advance income tax on fruits and vegetables has been cancelled.