The import of electric vehicles has increased, will the budget increase the price ?

After rumors of increased customs duties and taxes in the budget, the import of electric vehicles surged in the past month of Baisakh.

According to the Customs Department, 1,404 electric vehicles were imported in Baisakh. This is more than double compared to Chaitra when 658 electric vehicles were imported.

On the upcoming 15th of Jestha, the government will be presenting the budget for the fiscal year 2081/82. Due to a decline in government revenue, there is talk of increasing taxes on electric vehicles to boost revenue.

The government's tax incentives have led to an increase in the import of electric vehicles in recent years. Up to Baisakh of the current fiscal year 2080/81 alone, 8,497 electric vehicles (cars and jeeps) have been imported into Nepal. This is more than double compared to the previous fiscal year when 4,050 electric vehicles were imported.

So far, more than 26,000 four-wheeled electric vehicles have been imported into Nepal. Particularly, the years when the government increased tax exemptions saw higher imports of electric vehicles, according to data. For instance, former Finance Minister Dr. Yubaraj Khatiwada increased the taxes on electric vehicles in the budget for the fiscal year 2077/78, which resulted in a sluggish import of electric vehicles for the following two years.

Changes in tax rates have been influencing the import of electric vehicles. Environmentalists have been urging the continuation of tax exemptions on electric vehicles, as it helps reduce environmental pollution.