Annual EV Taxes reduced.

Nepal’s government has sharply reduced annual road taxes for electric vehicles, easing costs for owners across all segments. Previously, EVs were taxed in higher slabs, with yearly rates running from Rs 5,000 for small motors to Rs 30,000 for models above 201 kW. Under the new structure, these amounts drop significantly: the lowest band (up to 50 kW) now pays Rs 4,000, while even the highest band (201 kW and above) pays only Rs 9,500 per year.

Mid-range EVs benefit the most, with taxes in the 51–125 kW and 126–200 kW brackets cut by more than two-thirds. Electric two-wheelers now face a flat annual tax of Rs 3,000, making e-scooters and e-bikes more attractive for daily commuters. Alongside the rate cuts, the government has also shifted EV taxation toward a price-based system instead of relying only on motor power, aiming for a fairer and more transparent framework that supports broader EV adoption in Nepal.