Pic: Gopen RaiIn an effort to reduce the import of petroleum by encouraging sales of electric vehicles, the government in its annual budget announced Saturday has cut the custom duty on private electric vehicles to 10%, and brought it down to 1% for public electric transportation.
In addition to custom duties, the government is going to continue with zero percent excise duty on electric vehicles. In addition, the duty on machinery for recycling lead batteries has also been slashed to 1%.
“This is going to open up the segment much more, making it attractive for other global players like Nissan to come into Nepal,” said Cabinet Shrestha of Agni Incorporated, which represents Mahindra Reva electric cars in Nepal.
However, Ganga Bahadur Thapa of Nepal Economic Concern Society (NCES) feels that although the move will increase awareness among the public towards electric vehicles, it is not enough to bring down the demand for fossil fuel cars.
“Until the government reduces tax on battery and parts used for electric vehicles to boost the manufacturing of electric vehicles in the country, things are not going to change much,” said Thapa adding that the delay on part of the government to approve route permits for electric vehicles is another factor dampening demand for electric public transport.
Smriti Basnet