December 23: The import of electric vehicles (EVs) has taken a huge leap after the government lowered the customs duty.  The import of EVs has increased tremendously in the first five months of the current fiscal year 2078/79.

The import of EVs has increased via the dry port of Birgunj. Balaram Bhandari, the customs officer at Birgunj Dry Port, informed that the import of EVs has increased after the government decided to adopt a policy to encourage the use of clean energy. Bhandari informed that 290 vehicles from various companies worth Rs 891.5 million were imported through the dry port. The data is of mid-July to mid-November.

According to the customs office, 134 EVs worth Rs 439.3 million were imported from the dry port in the last fiscal year. During the review period, only eight such vehicles worth Rs 189 million were cleared through the customs.

“In the current fiscal year, the government has reduced customs duty on imports of EVs and removed excise duty. Due to this reason, the import of EVs has surged in great numbers,” said Bhandari.

The then Finance Minister Bishnu Poudel had reduced the customs duty on the import of electric vehicles while introducing the current year’s budget through an ordinance. Customs officials say that there has been an increase in import after the removal of excise duty on imports.

Despite the increase in electricity production in the country, there was no consumption. Therefore, the decision to lower the customs duty on import of EVs was taken. The 80 percent customs duty in the previous fiscal year 2077/78 was reduced to 10 to 40 percent in the current fiscal year.

In the previous fiscal year, the then Finance Minister Yuba Raj Khatiwada received heavy criticism for imposing high tariffs and excise duties that directly affected the import of the EVs.

In the previous fiscal year, 30 percent excise duty was fixed for imports but this year's budget has removed the excise duty. At present, importers have to pay 10 to 40 percent customs duty and 13 percent value added tax depending on the capacity of the vehicle. The road improvement fee is 5 percent. Reduction in the excise duty rate has positively affected the import of EVs.