Luxury Electric Vehicle Prices Set to Rise

The government has decided to increase customs duties and clean infrastructure investment fees on electric vehicles in the upcoming fiscal year’s budget, leading to a hike in the prices of luxury vehicles. Under the new regulations, electric vehicles priced above NPR 5 million will incur an additional clean infrastructure investment fee of up to 110%. Previously, customs duties were levied solely based on engine capacity, but now taxes will be determined based on the commercial value of the vehicles.

May 29, Kathmandu – Starting from the next fiscal year, the prices of luxury electric vehicles will increase. The government has raised customs duties and clean investment contribution fees based on vehicle prices, which will drive up vehicle costs. According to the new budget, electric vehicles will attract a 20% customs duty and a clean investment contribution fee of up to 110%, depending on their value.

Until now, electric vehicles were subject to customs duties based on engine capacity. The government has stipulated that for imported electric vehicles with a declared commercial value up to NPR 2 million, only a 2.5% clean infrastructure investment fee will be applied. For vehicles valued between NPR 3 million and NPR 4 million, an additional 15% clean infrastructure investment fee will be charged.

Vehicles with a commercial value between NPR 4 million and NPR 5 million will be subject to an added 70% clean infrastructure investment fee. For vehicles priced above NPR 5 million, an additional 110% clean infrastructure investment fee will apply. The government has clarified that the customs duty will be calculated on the declared value plus the applicable customs revenue, and on top of that, the clean infrastructure investment fee will be levied.