Bagmati Province hikes annual tax on small EVs

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KATHMANDU: The Bagmati Province government has increased the annual vehicle tax for small electric vehicles. The move comes through the Economic Bill 2026 (2083).

The province has increased the annual tax for four-wheeler EVs with motor capacity up to 50 kW, including cars, jeeps, vans, microbuses, buses, and trucks.

The annual tax for private four-wheeler EVs has increased by Rs 1,500, while the tax for public EVs has increased by Rs 1,000.

According to the Economic Bill, private electric vehicles with motors up to 50 kW registered in Bagmati Province will have to pay Rs 6,500 annually from the upcoming fiscal year. Currently, such private EVs pay Rs 5,000 annually.

The province has kept the tax rates unchanged for EVs with higher motor capacity. Private EVs above 50 kW and up to 125 kW will continue to pay Rs 15,000 annually. Vehicles above 125 kW and up to 200 kW will pay Rs 20,000, while EVs above 200 kW will pay Rs 30,000 annually.

The government has also increased the annual tax for public electric vehicles by Rs 1,000. Currently, public four-wheeler EVs with motor capacity between 20 kW and 50 kW pay Rs 3,000 annually. From the next fiscal year, they will have to pay Rs 4,000.

The tax rates for public EVs above 50 kW remain unchanged. Public EVs above 50 kW and up to 125 kW will pay Rs 5,000, vehicles above 125 kW and up to 200 kW will pay Rs 10,000, and EVs above 200 kW will pay Rs 15,000 annually.

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