Import of electric vehicles increased by 600 percent last year

Published On: August 12, 2022 01:49 PM NPT By: Himal Lamsal

KATHMANDU, August 12: The import of electric vehicles increased by more than 600 percent after the government reduced the excise duty and customs duty on electric vehicles in the last fiscal year - 2021/22. In the FY 2020/21, after the former Finance Minister Yuba Raj Khatiwada imposed excessive tax on electric vehicles, the import of electric vehicles had decreased.

According to the Department of Customs, 1,807 four-wheeled electric vehicles were imported in the FY 2021/22. In the FY 2020/21, only 249 such vehicles were imported. With the reduction of tax on the import of electric vehicles in last year's budget, the import of electric vehicles increased by almost six times.

The statistics maintained by the Customs Department show that 996 electric cars, jeeps and vans with a capacity of 100 kilowatts worth Rs 2.66 billion were imported in the last fiscal year. During that period, 13 electric vehicles with a capacity of 150 kilowatts worth Rs 36.7 million were imported. Likewise, 792 electric vehicles with a capacity of 100 to 200 kilowatts worth Rs 2.56 billion were imported.

A total of Rs 24.1 million was spent on importing four electric vehicles with a capacity of 200 to 300 kW. Similarly, importing two electric vehicles of 300 kW capacity cost Rs 25.6 million. In the FY 2020/21, 120 electric cars, jeeps and vans with a capacity of 100 kW worth Rs 185.5 million were imported.

Similarly, 25 cars, jeeps and vans with a capacity of 50 to 100 kW and worth Rs 76.4 million were imported. Fifty three electric vehicles with a capacity of 100 to 150 kW worth Rs 166.4 million were imported. Likewise, 53 electric vehicles with a capacity of 150 to 200 kW worth Rs 229.3 million were imported.

In the last fiscal year, the government imported 6,405 three-wheeler electric vehicles worth Rs 621.9 million. In the Fiscal Year 2020/21, 1,943 three-wheeler electric vehicles worth Rs 164.9 million were imported. Meanwhile, Finance Minister Janardan Sharma has increased the excise duty and customs duty on the import of electric vehicles through the budget of the current fiscal year 2022/23.

In the current fiscal year's budget, the government has increased the customs duty on electric vehicles with a capacity of 300 kilowatt from 40 percent to 60 percent. Likewise, the excise duty on electric vehicles with a capacity of 300 kilowatt has been increased from 45 percent to 60 percent. These 300 kilowatt capacity electric vehicles are being imported in very small numbers.

The government has increased the customs duty from 15 percent to 30 percent on electric vehicles with a capacity of 100 kilowatt to 200 kilowatt through the Financial Act. Similarly, through the Financial Act, the customs rate for electric vehicles with a capacity of 200 kW to 300 kW has been increased from 30 percent to 45 percent.

The customs duty on electric vehicles with a capacity of 300 kW has been increased from 40 percent to 60 percent. Likewise, no excise duty has been imposed on electric vehicles with a capacity of 100 kilowatt.