Budget 2021/22: Excise Duties On EVs Finally Removed!
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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 – a much-needed relief to consumers and businesses who are planning to go electric. 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.
According to the earlier budget presented by Dr. Yubaraj Khatiwada, the excise duty on electric cars was raised to 40-80% depending upon their peak power. Electric cars with peak power ranging between 50-100kW bore an excise duty of 40%, 50% if it’s between 100-150kW and 60% for 150-200kW. And, to make matters worse, the government slapped an extra 80% customs duty with 50% reimbursement. This was further subjected to 13% VAT and a 5% road toll.
Although the dealers are yet to take their call on the new pricing, it is assumed that the prices will see a phenomenal decrease from the current pricing.
Also Read: Budget 2021/22: Government Reduces Customs Duty On EVs
EV companies didn’t take much time to increase the prices of their EV products after budget announcement. Let’s see if they will decrease the prices in that pace. Hoping to see our own Yatri Motorcycles decreasing the price. Only if all the NTORQs would be replaced with YATRIs on the road.