Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: Nepalese auto businesses are breathing a sigh of relief after the government decided to keep taxes on electric vehicles (EVs) unchanged in the 2025/26 budget. Over 14,000 EVs were imported in the first ten and a half months of the current fiscal year, with nearly six months’ worth of vehicles brought in during the last one and a half months alone. Anticipating a tax hike, businesses rushed to import EVs, stockpiling them at border points, but the government’s decision to maintain existing tax rates has sparked optimism.
Finance Minister Bishnu Prasad Paudel announced in the budget that EV tax rates would remain unchanged, a move welcomed by the auto industry.
Karan Chaudhary, President of the Nepal Automobile Dealers’ Association (NADA), praised the government for delivering a budget aligned with their demands for policy stability. “The government’s stable policy sends a positive message to the market,” he said, noting that NADA plans to issue a statement on Friday welcoming the budget.
NADA Vice President Rajan Babu Shrestha echoed this sentiment, calling the budget commendable and noting that it dispelled fears of a tax hike. “We were uncertain about a potential tax increase, but this decision has energized businesses,” he said.
Auto dealer Akash Golchha expressed satisfaction with the budget, stating it met their expectations. He added that the recently imported vehicles would easily sell over the next four months, with plans to place new orders in two to three months. “We’re confident, with no stress or issues,” he said.
Businesses believe the high volume of EV imports influenced the government’s decision to avoid a tax hike. This move is expected to maintain market stability and boost demand for electric vehicles in Nepal.
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