The new value-based import duty structure, what it did to EV prices, and the annual road tax EVs still pay
On May 29, 2026 (Jestha 15, 2083), the Finance Bill scrapped Nepal's motor-power (kW) based EV import taxation. Imported passenger EVs now pay a flat 20% customs duty, and the old excise duty is replaced by a Clean Infrastructure Investment Fee (CIIF) charged on the customs (CIF) value. The 5% road construction fee and 13% VAT continue as before.
Net effect: budget EVs stay lightly taxed, while mid-range and premium EVs pay substantially more than under the kW system — every pre-budget EV price table in Nepal is now out of date.
| Customs (CIF) value | CIIF rate |
|---|---|
| Up to Rs 20 lakh | 2.5% |
| Rs 20 – 30 lakh | 20% |
| Rs 30 – 40 lakh | 35% |
| Rs 40 – 50 lakh | 90% |
| Above Rs 50 lakh | 130% |
Plus flat 20% customs duty, 5% road construction fee, and 13% VAT. Bands per the corrected Finance Bill 2083 (the ministry withdrew an early version over an EV-tax error) — verified against Kathmandu Post, Fiscal Nepal and myRepublica reporting, July 2026. Electric public transport (10+ seaters) is reported to get a concessional 2.5% fee; confirm commercial-vehicle specifics against the Economic Act text before relying on them.
Since Budget 2083/84 (announced May 29, 2026), imported passenger EVs pay a flat 20% customs duty plus a Clean Infrastructure Investment Fee based on the customs (CIF) value — 2.5% up to Rs 20 lakh, 20% for Rs 20–30 lakh, 35% for Rs 30–40 lakh, 90% for Rs 40–50 lakh, and 130% above Rs 50 lakh — plus the 5% road construction fee and 13% VAT. The old motor-kW-based excise system is abolished.
For cheaper EVs (customs value under Rs 20 lakh) the burden is light — 20% customs + 2.5% fee. Mid-range and premium EVs face substantially higher totals (35–130% fee bands), so most price lists above roughly Rs 40 lakh retail have been revised upward. Any pre-budget price table you see online is now stale.
Customs measures in Nepal's Finance Bill apply from the budget announcement (end of May 2026) at customs points — not from the fiscal-year start. Vehicles imported before the announcement cleared under the old kW-based rates.
Annual (bluebook) tax is separate from import tax and much lower than petrol equivalents: electric scooters pay Rs 1,000–3,000 by wattage and electric cars Rs 6,500–30,000 by motor kW in Bagmati (the 10–50 kW band rose Rs 1,500 in FY 2083/84). Use the vehicle tax calculator for your province.
Not for import duty — the kW bands were replaced by the value-based fee. But annual road tax and third-party insurance for EVs are still banded by motor power (kW for cars, watts for scooters), so the kW figure on your bluebook still matters every year.
See current EV prices in Nepal (post-budget), your annual road tax by province, EV insurance premiums, and EV financing EMIs — several banks price EV loans below standard auto loans.