Nepal Government has brought forth a new budget for the fiscal year 2021/22. It comes as a replacement bill, revising the ordinance budget previously introduced by the last KP Oli-led Government.
Any imported product is subjected to four different taxes: Custom Duty, Excise Duty, VAT, and Road Development Tax.
The new budget includes a provision that increases the Excise Duty and Road Development Tax (RDT) on two-wheelers.
Depending on the engine capacity, the price will increase from Rs. 15,000 to Rs. 50,000.
TechLekh reached out to Yamaha, the brand directly affected by this bill, to get clarification about the upcoming price hike.
As per the Yamaha representative, the company has no other options but to adopt the new duty structure. Furthermore, the final price increments are under consideration. However, the company isn’t quite certain on when the price will be updated as new prices will have adverse impact on the festival season.”
Increased Two-Wheeler Excise Duty
The government has imposed variable excise duty rates depending on the engine capacity. Moreover, the imported two-wheelers will see excise duty increment from 10% to 20%.
Furthermore, the classification table has also been revised.
|Engine CC||Revised Excise Duty|
|50cc – 125cc||40%|
|125cc – 200cc||50%|
|200cc – 250cc||60%|
|500cc – 800cc||100%|
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