KATHMANDU: Finance Minister Bishnu Paudel has said that the government decided to keep taxes on electric vehicles (EVs) stable in order to promote electricity consumption in the country.
Addressing an event organized by the Nepal Forum of Economic Journalists on budget and monetary policy coordination, Minister Paudel stated that the current fiscal policy aims to boost domestic energy use by encouraging the adoption of electric vehicles.
He added that his approach to tax policy has been guided by consistency and stability.
“We have maintained a stable tax rate on EVs because it aligns with our broader goal of increasing electricity consumption and reducing dependency on fossil fuels,” he said.
The finance minister also highlighted that the government’s responsibility goes beyond just announcing the budget as it must also ensure effective implementation. He said preparations for implementing the upcoming fiscal year’s budget are already underway.
Addressing concerns regarding ambiguity in the “take or pay” power purchase mechanism included in the budget, Paudel clarified the government’s position.
He noted that once the issue was explained clearly, stakeholders including banks, financial institutions, and energy producers expressed satisfaction, and the situation is now moving in the right direction.
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