The Government of Nepal today unveiled the budget for fiscal year 2021/22, today. Finance Minister Bishnu Paudel on Saturday announced a budget of Rs 1.647 trillion for the upcoming fiscal year 2021/22.
During the budget speech for the fiscal year 2078/79 on today, Hon. Finance Minister Bishnu Poudel told a policy will be taken to replace the vehicles running on petroleum products with electric vehicles by 2088 BS. Minister Bishnu Poudel also told a task force with experts will be formed to study the issue.
Hon. Finance Minister Bishnu Prasad Poudel has informed that the excise duty on electric vehicles has been completely waived in the budget of the Fiscal Year 2078/79 BS. The government has also revised the custom duties for EVs. Earlier, customs duty was levied at 1 percent on public transport and 10 percent on private vehicles.
As per last year's budget presented by Dr. Yubaraj Khatiwada, the excise duty on electric cars was raised to 40-80% depending upon their peak power.
As per last year's budget imposed customs duty on the price of electric cars like other vehicles and has also increased excise duty. The previous tariff rate of 10 percent has been increased to up to 40 percent and excise duty will also be levied on the basis of motor capacity. For vehicles up to 50 kW the excise duty is 30 percent, 50-100 kW is 40 percent, 100-150 kW is 50 percent, 150-200 kW is 60 percent, 200-300 Kw 70 percent, 300 and above is 80 percent.
This year the Government is committed to promoting electric vehicles by announcing a policy of replacing the vehicles running on petroleum products with electric vehicles by 2031. The government also wants to encourage the assembly of electric vehicles in Nepal by inviting the top 10 EV brands.
Similarly, Minister Poudel told the government will waive the renewal taxes for five years if anyone wants to convert their existing petrol engine vehicle to an electric powertrain.
We can say this budget is a big relief to consumers who are planning to buy electric vehicles.
Nepal Electricity Authority (NEA) has signed a contract agreement worth Rs 377.95 million (tax excluded), with Wanwang Digital Energy Corporation for import, installation, inspection, operation, and maintenance of EV charging stations in 50 different locations across Nepal.
According to a notice provided by NEA a year ago, the charging stations will be built in various parks, shopping malls, and open spaces.
There will be 7 charging stations within Kathmandu valley, 5 in Province no. 1, 7 in Province no. 2, 13 in Bagmati region except Kathmandu, 6 in Gandaki Province, 8 in Lumbini Province, 1 in Karnali, and 3 in Sudurpaschim regions of Nepal.
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