The government has taken an unstable policy on electric vehicles, says JAAM Nepal (Journalist Association For Automobile and Mobility). ‘In the last 3 years, the electric vehicles segment has been subjected to unfair taxation policies. We have realized that this has created uncertainty among customers along with the dealers,” said the association in a statement.

By changing the tax rates on electric vehicles in the Finance Ordinance 2080, the government has categorised EVs up to 50 kilowatts as the basis of the base segment. The tax rates for EVs above 50 kW have been changed once again. According to JAAM Nepal, it is difficult to understand the government’s attitude towards EVs.

JAAM Nepal believes that the government has acted contrary to its declared policy by increasing taxes on electric microbuses with a capacity of up to 14 seats, which are used in public transport.

According to the new Finance Ordinance, a custom of 10% will be imposed on electric microbuses with 10 to 14 seats. The Economic Act 2079 imposed a customs duty of 1% and 13% VAT on electric microbus, but, now, 13% VAT will be charged on 10% customs.

JAAM Nepal’s President Ujwal Jung Shah said that the government cannot justify the increment of customs duty on electric microbuses. “Therefore, JAAM Nepal is of the opinion that the Finance Minister should correct his mistake in this matter before the budget is passed by the parliament,” he said.