KATHMANDU: The government has revised another provision related to the Clean Infrastructure Investment Fee imposed on electric vehicles.
Through an amendment to the Finance Bill 2026/27, the government has exempted EVs imported before the budget announcement but not yet registered from paying the new fee, provided they have already paid applicable import duties.
The original Finance Bill, presented on May 29, 2026, required EVs imported before the budget but awaiting registration to pay the Clean Infrastructure Investment Fee during registration. The fee was to be collected by transport offices and deposited into the federal consolidated fund.
Following the amendment, vehicles that have already paid excise duty or equivalent import taxes at customs will no longer be subject to the new fee at the time of registration.
The revised provision states that the Clean Infrastructure Investment Fee will not be charged on vehicles that have already paid excise duty at the point of import. This means EVs imported before the budget and cleared through customs will not face an additional tax burden during registration.
The latest change comes after strong opposition from the automobile industry over the government’s new EV taxation policy.
Earlier, the government also reduced the Road Development Fee (RDF) on entry-level EVs. The RDF on electric cars valued up to Rs 2 million was cut from 5 percent to 2.5 percent.
Under the budget for fiscal year 2026/27, the government replaced the motor power-based EV tax system with a value-based structure. It also removed excise duty on EVs and introduced the Clean Infrastructure Investment Fee.
The new fee ranges from 2.5 percent to 130 percent, depending on vehicle value. EVs priced up to Rs 2 million attract a 2.5 percent fee, while rates rise to 20 percent for vehicles worth Rs 2-3 million, 35 percent for Rs 3-4 million, 90 percent for Rs 4-5 million, and 130 percent for vehicles priced above Rs 5 million.
The fee is calculated on the customs valuation (CIF) used for customs duty assessment, including the applicable customs duty.
