KATHMANDU: Electric vehicle (EV) importers are rushing to bring in large volumes of EVs, anticipating a potential tax hike through the budget for the upcoming fiscal year 2025/26.
The government is bringing the budget for the new fiscal year on May 28.
Importers are stocking up cars at current rates, hoping to cash in on potential price increases post-budget. This import surge has led to congestion at customs yards, especially those along the Nepal-China border.
Although the government has not confirmed any changes to EV taxation, market sentiment suggests that economic pressures could prompt a revision of the duty on EV imports. Since duties on electric vehicles are far lower compared to those powered by fossil fuels, importers anticipate a duty revision through the upcoming budget.
Since mid-April, the import of EVs from China has sharply increased. Customs yards in Tatopani and Rasuwagadhi are now packed with newly arrived vehicles. Over 1,000 EVs have already been cleared through these two checkpoints since mid-April.
More than 1,000 EVs are currently parked in Tatopani, according to Kamal Kumar Bhattarai, the information officer for Tatopani Customs Office. “Around 500 of those units arrived since mid-April (the start of the Nepali month of Baishakh). The clearance process for 300 vehicles is underway,” Bhattarai said. He expects more arrivals as the budget date nears.
Since mid-April, the import of EVs from China has sharply increased. Customs yards in Tatopani and Rasuwagadhi are now packed with newly arrived vehicles.
Rasuwagadhi Customs Office has reported a similar trend. Rabindra Prasad Pyakurel, the information officer for Rasuwagadhi Customs Office, said 1,350 EVs have entered from China through the customs point since mid-April. “Some 800 of those EVs have already been cleared, while the remaining 550 are awaiting inspection,” he added.
Customs officials are currently clearing 30-40 vehicles daily at Rasuwagadhi, with more shipments expected from China in the coming days.
At the Chobhar dry port in Kathmandu, 55 EVs are waiting for customs clearance. Prem Kafle, an office assistant at the Chobhar Dry Port Customs Office, said out of 56 units imported over the past two months, only one has been cleared. Customs clearance process of the remaining, mainly from brands like Wuling, Citroen, Pugeot and MG, is underway, he added.
In contrast, EV imports through Nepal-India border points have remained stable. Deepak Lamichhane, chief of the Birgunj Customs Office, said vehicle imports from India have been consistent with previous months.
The import pattern is similar to last year, when importers brought in about 5,000 EVs in the six weeks leading up to the budget announcement.
Customs data shows Nepal imported 7,967 electric vehicles over the first nine months of the current fiscal year.
