Government Reduces Tax On Electric vehicle
October 2, 2020 | Investopaper
The government has reduced the rate of excise duty on import of electric vehicles. The excise duty on electric vehicles import was increased in the budget of the current fiscal year. The cabinet meeting on Thursday decided to give exemption in the rate of excise duty according to the capacity of electric vehicles.
The tax rates have been changed as per sub-section 1 of section 18 of the Financial Act-077. After the widespread protest against the increase in tax on electric vehicles through the budget brought on Jestha 15, the tax was reduced. Before the budget, customs duty was 10 percent but it was increased to 80 percent through the budget. The excise duty was also increased from 30 to 80 percent depending on the capacity of electric vehicles.
Electric vehicles up to 50 kW capacity were subject to 30 percent excise duty. Now, the government will provide 80 percent discount on it. Vehicles with a capacity of 51 to 100 kilowatts were subject to 40 percent excise duty. Now it will receive 75 percent discount. Similarly, 50 percent excise duty was levied on electric vehicles with a capacity of 101 to 150 kilowatts. These vehicles will receive 70 percent discount on excise duty. Likewise, the excise duty on vehicles with a capacity of more than 151 kW was 60 to 80 percent which will now receive 25 percent discount.
