KATHMANDU: The Ministry of Finance has clarified the tax structure for electric vehicles (EVs) following confusion over the provisions introduced through the Financial Act 2026(2083).
The government has replaced the previous excise duty on EVs with a new levy called the Clean Infrastructure Investment Fee. Different interpretations of the new provision had emerged after the budget announcement.
In a statement, the secretariat of Finance Minister Dr. Swarnim Wagle clarified how the new tax will be calculated.
According to the ministry, EVs valued up to Rs 2 million will attract a 2.5 percent Clean Infrastructure Investment Fee. Vehicles priced between Rs 2 million and Rs 3 million will face a 20 percent fee, while those valued between Rs 3 million and Rs 4 million will be charged 35 percent.
Similarly, EVs priced between Rs 4 million and Rs 5 million will be subject to a 90 percent fee. Vehicles valued above Rs 5 million will attract a 130 percent fee.
The fee will be calculated on the customs value after adding the applicable customs duty to the CIF value of the vehicle.
Under the new tax structure, EVs will be subject to four different charges. Along with the Clean Infrastructure Investment Fee, a 20 percent customs duty, 5 percent road construction fee, and 13 percent VAT will continue to apply.
The clarification is expected to provide greater certainty for importers, dealers, and EV buyers following the budget announcement.
