> New tax policy have increased custom duty from 10% to 80% for electric vehicles, and excise duty from 10% to range of 30% and 80% depending upon its power. Road construction tax has increased from Rs.7500 to Rs.12,000 for electric motorcycle.
When whole World is rapidly adapting electric vehicle, new tax policy on Electric Vehicles(EV) will slow down adaptation of EVs in Nepal. EVs faster adaptation will benefit as follows:
- Nepal has hydropower based renewable energy. With this we can create completely pollution free transportation ecosystem with EVs.
- As per government, this year approx. 1000+ MW will be added this year. We will have surplus power after this. Battery's in EVs act as excellent source of storing surplus power and supplying back to grid when there is electric shortage.
- Nepal has Imported approx. Rs. 155 billion worth petrol and diesel in 2018/19. More EVs means less demand of petrols and diesel, thus saving billion rupees of taxpayers like ourself.
- COVID-19 emergency lockdown have proven that air quality in cities such as Kathmandu can be reverted. EVs replacing petrol/diesel vehicles would reduce air pollution and deaths due to air pollution. In Nepal the annual premature death due to air pollution is approx. 38,000.
Electric Vehicles by default are expensive than petrol/diesel vehicles all over the world. As in the case of Nepal, the high custom difference between petrol/diesel vehicle and electric vehicle was utmost advantage. With new tax policy, EVs will be out of financial range of many people so people will buy Petrol/diesel vehicles. Nepal is nowhere near in production of EVs inhouse. Importing is only option we have. So, this petition is appeal government to cancel new tax policy on EVs for cleaner cities, and better economy of Nepal.