Finance Minister Mahat Defended Decision On Tax Hike On Electric Vehicles: Finance Minister

Finance Minister Mahat Defended Decision On Tax Hike On Electric Vehicles: Finance Minister

May 31, 2023, 7:32 a.m.

Finance Minister Dr. Prakash Saran Mahat said on Tuesday that tax had not been increased on the import of electric vehicles.

Through he has added 5 percent customs duty on electric vehicles from 50 to 100 kilowatts and imposed 10 percent excise duty. Along with this, 10 percent customs and excise duties have been reduced on luxury segment electric vehicles of 100 to 200 kilowatts.

Defending the budget of the upcoming fiscal year 2023/24, the Finance Minister said that the aim of the budget was not to discourage the use of electric vehicles.

"Whoever said tax is increased on electric vehicles, said it wrong. The government only has rationalised tax rates but not increased," he said, adding that rationalisation does not discourage the use of electric vehicles.

Customs duty has been increased by 15 per cent on entry-level electric vehicles of 50 to 100 KW, which are widely imported and used in Nepal. Finance Minister Dr. Mahat also claimed that there was no truth in the allegation that the government retreated from the policy of promoting electric vehicles.

"A petroleum-run vehicle of the same level is heavily taxed. Compared to that, it is much less," he added. He also clarified that there was no possibility of going back to petroleum vehicles again.

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