Image: via en.meroauto.com
Vehicle owners across Nepal can benefit from new tax and penalty waivers as provincial governments start applying their budgets for fiscal year 2083/84 (2026/27). According to official provincial announcements, the schemes mainly target vehicles with long-unpaid taxes, overdue renewals or units that have been off the road for years.
What is being waived
Most provinces are offering some mix of: - Penalty waivers on old vehicle tax and renewal fines - Relief for scrapping or deregistering old, unused vehicles - Discounts on vehicle tax for advance payment or special services - Fee waivers for transport-related businesses renewing their licenses
The exact benefit, deadline and conditions change by province, so owners must follow the rules of their own Transport Management Office.
Key schemes by province
Lumbini Province
- 50% waiver on vehicle tax penalties if owners clear all due taxes and renew their vehicles by mid-January 2027 (Poush end 2083), according to the provincial budget announcement.
- Private vehicles that have paid tax regularly for 20 years but are now out of use can cancel registration by paying only the last two years’ tax.
Sudurpashchim Province
- 100% waiver on tax and renewal penalties for vehicles that have remained unrenewed and unpaid for at least five years, as per the provincial notice.
Koshi Province
- Owners with more than five years of unpaid vehicle tax can cancel registration by paying only the latest fiscal year’s tax by mid-June 2027 (Jestha end 2084); all past taxes, fees and penalties will be waived according to the announcement.
- 60% vehicle tax discount for public vehicles with 14 or more seats that provide fare concessions to students, senior citizens and persons with disabilities.
- Full vehicle tax exemption for transport operators carrying foreign tourists from border points to destinations in Koshi or other provinces under the province’s tourism promotion plan.
Bagmati Province
- Full waiver on tax and renewal penalties for public vehicles over 20 years old that are being scrapped, if owners complete the process by mid-January 2027.
- Renewal fees and penalties waived for transport-related businesses (driving schools, workshops, reconditioning centres) if they renew their licenses by mid-January 2027.
Gandaki Province
- Special schemes for vehicles destroyed during last year’s incidents and long-unused vehicles.
- Eligible owners can deregister such vehicles with waivers on outstanding taxes, renewal fees and penalties within deadlines set by the province.
Karnali Province
- All penalties waived for owners scrapping physically unusable vehicles if they pay vehicle tax and renewal fees for the last three fiscal years by mid-June 2027.
- 20% discount on vehicle tax for owners who decide to pay five years of tax in advance.
What vehicle owners should do
- Check the official notice from your provincial government or Transport Management Office for detailed conditions.
- Confirm deadline dates and required documents before visiting the office or using digital payment channels.
- If your vehicle has been unused, scrapped, destroyed or kept off the road for years, ask specifically about deregistration and penalty waiver options.
For Nepali buyers and existing owners, these schemes are a chance to clear old dues at lower cost, tidy up vehicle records, or formally scrap long-unused vehicles without paying full historical penalties.
Important takeaway: Most waivers are time-limited to mid-January 2027 or mid-June 2027, and benefits differ province by province, so prompt action and local verification are essential.
Reported by the Nepal AutoMart news desk. Prices verified against Nepal AutoMart's own distributor-sourced data.
