KATHMANDU: The government has decided to keep the existing customs and other taxes on electric vehicles (EVs) unchanged in the new fiscal budget for 2025/26.
Presenting the annual budget on Wednesday, Finance Minister Bishnu Prasad Paudel stated that taxes on EVs remain the same to continue encouraging the adoption of environmentally friendly transport.
The announcement comes amid recent concerns that the government might increase customs duties on EVs. This speculation had led to a surge in imports, causing congestion at the Chobhar dry port.
Electric vehicle assembly industries, as well as private sector tunnel boring machine imports, will also face only 1% customs duty. VAT on digital payment systems has been scrapped, and advance income tax on fruits and vegetables has been lifted.
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