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Started 1 week ago · Updated 6 days ago

Nepal Loses Billions in EV Tax Revenue Due to Understated Motor Power, Auditor General Reports

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Nepal's government may have lost billions of rupees in customs and excise revenue due to importers understating the peak motor power of electric vehicles to evade higher taxes. The Office of the Auditor General's 63rd annual report highlighted that customs offices at Rasuwagadhi and Tatopani alone incurred a revenue shortfall of Rs 2.50 billion from such practices. The Auditor General has recommended an investigation and recovery of the unpaid taxes.

  • Importers allegedly declared electric vehicles with actual motor capacities above 100 kilowatts as 99.9 kilowatts or exactly 100 kilowatts to fall into lower tax brackets.
  • Tax rates on electric vehicles in Nepal are determined by peak motor power, with higher capacities incurring significantly higher customs and excise duties.
  • Customs officials reportedly approved imports based on invoices without conducting independent technical verification of vehicle specifications.
  • The Auditor General compared customs declarations with international data and found significant discrepancies in several popular EV brands and models.
  • The Department of Transport Management only certifies roadworthiness and does not verify technical details of imported vehicles.

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Office of the Auditor General Department of Transport Management Rasuwagadhi Customs Office Tatopani Customs Office

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