Kathmandu, June 1 -- The government's new tax policy unveiled through the budget for the fiscal year 2026-27 has triggered sharp concern among electric vehicle importers and dealers, who say the revised structure will significantly increase vehicle prices and undermine Nepal's transition towards cleaner transport.

Under the new provisions, the government has removed the excise duty previously imposed on electric vehicles and replaced it with a Clean Infrastructure Investment Fee (CIIF). While customs duty has been fixed at 20 percent for all vehicles, the CIIF ranges from 2.5 percent to as high as 130 percent depending on the vehicle's customs value. A road construction fee of 5 percent and value-added tax of 13 percent will also continu...