KATHMANDU: The Lumbini provincial government has continued its policy of promoting electric vehicles (EVs) by providing discounts on annual vehicle tax for the upcoming fiscal year.
According to the Economic Bill 2026 (2083), electric vehicles registered for rental services will receive a 50 percent discount on annual vehicle tax, while private electric vehicles will get a 20 percent discount.
The bill states that a 50 percent discount will be provided on vehicle tax for electric vehicles operated for rental purposes and a 20 percent discount will be given to privately owned electric vehicles.
Lumbini has continued the EV-friendly policy at a time when other provinces have tightened their approach towards electric vehicle taxation. Bagmati Province has increased taxes on small electric vehicles, while some other provinces have maintained existing tax policies.
For private electric vehicles, Lumbini has fixed annual tax based on motor capacity. EVs with motors up to 50 kW will be charged Rs 11,000, while vehicles above 50 kW and up to 125 kW will pay Rs 17,000. Vehicles above 125 kW and up to 225 kW will have a tax of Rs 20,000, and models above 225 kW will be charged Rs 35,000.
After the 20 percent discount, private EV owners will save between Rs 2,200 and Rs 7,000 in annual tax.
For rental electric vehicles, the province has fixed annual tax of Rs 3,500 for models up to 20 kW, Rs 4,000 for vehicles above 20 kW and up to 50 kW, Rs 6,000 for vehicles above 50 kW and up to 125 kW, and Rs 16,000 for higher-powered models.
Rental EV operators will receive tax savings ranging from Rs 700 to Rs 8,000 depending on vehicle capacity. Similarly, private electric two-wheeler owners will also receive tax discounts ranging from Rs 500 to Rs 700.
The provincial government has not introduced any tax discount for internal combustion engine (ICE) vehicles.
