KATHMANDU : Vehicle owners across Nepal can now benefit from a range of tax and penalty waivers as provincial governments begin implementing their fiscal year 2026/27 budgets.
The new provisions offer relief on vehicle tax, renewal fees, registration cancellation, transport business renewals and other charges. Most of the schemes target owners who have unpaid taxes, overdue renewals or vehicles that have remained off the road for years.
The concessions vary by province, with different eligibility criteria and deadlines. Provincial governments expect the measures to help recover outstanding revenue while reducing the financial burden on vehicle owners.
Tax and renewal penalty waivers
Lumbini Province is offering a 50% waiver on vehicle tax penalties for owners who clear outstanding dues and renew their vehicles by the end of January 14, 2027.
Sudurpashchim Province has announced a 100% waiver on vehicle tax and renewal penalties for vehicles that have remained unrenewed and unpaid for at least five years.
Registration cancellation relief
Several provinces have introduced schemes for owners looking to scrap or deregister old vehicles.
Koshi Province will allow owners with more than five years of unpaid vehicle tax to cancel registration by paying only the latest fiscal year’s vehicle tax before the end of June 14, 2027. All previous taxes, fees and penalties will be waived.
Bagmati Province is offering a full waiver on tax and renewal penalties for public vehicles over 20 years old that are being scrapped. Owners must complete the process by the end of January 14, 2027.
Gandaki Province has introduced separate schemes for vehicles destroyed during last year’s incidents and for long-unused vehicles. Eligible owners will receive waivers on outstanding taxes, renewal fees and penalties if they deregister their vehicles within the specified deadlines.
Lumbini Province has also allowed owners of private vehicles that have paid taxes regularly for 20 years but are no longer in operation to cancel registration after clearing only the last two years’ tax.
Karnali Province will waive all penalties for owners scrapping physically unusable vehicles if they pay the last three fiscal years’ vehicle tax and renewal fees by June 14, 2027.
Incentives for public transportation
Koshi Province will provide a 60% vehicle tax discount to public vehicles with 14 or more seats that offer fare concessions to students, senior citizens and persons with disabilities.
The province has also announced a full vehicle tax exemption for transport operators carrying foreign tourists from border points to destinations within Koshi or other provinces under its tourism promotion program.
Business renewal and advance payment
Bagmati Province has waived renewal fees and penalties for transport-related businesses, including driving schools, workshops and reconditioning centers, if they renew their licenses by the end of January 14, 2027.
Meanwhile, Karnali Province is offering a 20% discount on vehicle tax for owners who choose to pay five years’ tax in advance.
Vehicle owners must complete the required procedures within the deadlines set by their respective provincial governments to claim the concessions.
