The government has revised excise duty slapped on EVs depending upon the battery capacity due to widespread criticisms from all fronts. The government has slightly reduced the tax on electric vehicles from the current year’s economic activity. A meeting of the Council of Ministers held today has decided to reduce the excise duty on electric vehicles. Government spokesperson Pradip Gyawali informed that it has been decided to reduce excise duty on some items. The government has fixed the excise duty on electric vehicles according to different capacities.

From the current year’s budget, the government has allocated 30 percent for 50 kW motor, 40 percent for 50 to 100 kW, 50 percent for 100 to 150 kW, 60 percent for 150 to 200 kW, 70 percent for 200 to 300 kW, and all over 300 kW. The excise duty on vehicles was fixed at 80 percent. These rates have been reduced according to capacity. According to sources, low-capacity electric vehicles have been reduced by a large percentage, while high-capacity vehicles have been reduced by a small percentage.

When Yuvaraj Khatiwada was the Finance Minister, the customs duty on electric vehicles was increased from 10 percent to 40 percent and the excise duty was fixed at a higher rate for the first time. Khatiwada had increased the average vehicle tax from 29 percent to 150 percent. Despite the reduction in excise duty, the same tariff rate will be applicable to all capacity vehicles. The government has fixed 80 percent customs duty and has given a 50 percent discount. The price was doubled from the new tax added by the government to electric vehicles. The traders had not cleared the customs saying that the vehicles would not be sold in the market after the price hike.

Here is the revised excise duty