KATHMANDU: It might sound strange if someone says the government imposes tax of Rs 6.5 million on a car that costs Rs 2 million when it is imported from our neighboring country India. But it is true in case of Nepal.

According to the tax determined by the Nepal government for the fiscal year 2019/20,  if a car costing Rs 20 million is imported from India, a customer will have to pay Rs 6.5 million under various topics.

A customer has to pay  Rs 80 percent custom tax, 100 percent revenue tax, 8 to 10 percent for road construction fee and 13 percent Value Added Tax (VAT) if he/she purchases a car with 2,500 to 3,000 CC for Rs 20 million from India.