Import of EVs increases by around 3,000 units

KATHMANDU, JUNE 23: On May 29 this year, the government hiked the customs and excise duties on electric vehicles (EVs) by 10 percent via the economic bill. Notwithstanding this, the import of such vehicles increased significantly in the last Nepali month of Jesth (mid-May to mid-June).

According to the Department of Customs, the number of imported EVs grew by 2,969 units during the review month compared to the previous month of Baishakh (mid-April to mid-May). In Jesth, 11,466 units were imported, while 8,497 units had been brought in Baishakh. The number of EVs brought in the review month accounts for some 25 percent of the total such vehicles imported in the last 11 months of the current fiscal year.

Through the said ordinance, a 10 percent customs duty was provisioned for EVs up to 50 kilowatts. For EVs from 50 to 100 kilowatts, the customs duty was increased from 10 percent to 15 percent. A 10 percent excise duty was also imposed on such products of the same range. The customs duty was increased while reducing the excise duty for those above 100 kilowatts.

The tax on EVs was further increased through the economic bill that came into effect on May 28, 2024. For EVs with 50 kW and 51 to 100 kW capacities, customs and excise duties increased by 5 percent each. For EVs from 101 to 200 kilowatts, the customs duty increased by 10 percent, while the excise duty remained the same. For EVs from 201 to 300 kilowatts, excise duty was reduced, but customs duty was increased.

The imports of entry-level EVs were high before the tax hike. Among the EVs imported till Jesth, 4,344 units were up to 50 kW, and 6,885 units were between 51 and 100 kW. Moreover, 209 EV units in the range of 100 to 200 kilowatts were imported, while only 27 EVs in the range of 201 to 300 kW were imported, and one unit above 300 kW arrived.

According to the Department, four-wheelers worth Rs 80 billion have been imported so far in the current fiscal year. Of them, the arithmetic value of only EVs (cars, jeeps, vans) stands at Rs 29 billion. The government collected Rs 13.6 billion from the import of EVs.

Monthly Import Data for last 11 months of the current FY:

• Shrawan (mid-July to mid-August): 110
• Bhadra (mid-August to mid-September): 788
• Ashwin (mid-September to mid-October): 1,237
• Kartik (mid-October to mid-November): 652
• Mangsir (mid-November to mid-December): 899
• Poush (mid-December to mid-January): 1,421
• Magh (mid-January to mid-February): 1,052
• Falgun (mid-February to mid-March): 276
• Chaitra (mid-March to mid-April): 658
• Baishakh (mid-April to mid-May): 1,404
• Jesth (mid-May to mid-June): 2,969

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