Amid growing speculation that the government may raise customs duties on electric vehicles (EVs) in the upcoming budget, importers are rushing to bring in EVs from China through the Tatopani and Rasuwagadhi border crossings. The surge in imports has been driven by fears that the Economic Bill, scheduled for announcement on May 29, could increase taxes on EVs.

Customs officials told New Business Age that a large number of EVs from various Chinese brands are being imported ahead of the budget announcement. The existing tax structure on EVs is significantly lower than on diesel and petrol vehicles, which has spurred domestic demand but also affected overall vehicle-related revenue.

Rasuwa Customs Office official Rabindra Prasad Pyakurel said that approximately 150 EVs are entering Nepal daily through the Rasuwagadhi checkpoint. Over 1,000 vehicles are currently awaiting customs clearance in the yard. “Importers are taking time to arrange the necessary payments, which is why so many vehicles are lined up,” he explained. According to Pyakurel, when hundreds of vehicles are declared for customs clearance, importers need to pay around Rs 150–160 million in revenue, which can take 2–3 days due to banking procedures.

He also noted that the Chinese side is prioritizing vehicle shipments, reducing other goods to make room for EVs. “Traders may have convinced Chinese exporters to send EVs quickly before the new tax rates come into effect,” Pyakurel added. However, the customs yard is facing congestion due to limited space, making vehicle storage and processing more difficult.

By April of the current fiscal year, a total of 5,701 EVs worth Rs 13.77 billion had entered Nepal via the Rasuwagadhi checkpoint. The customs office in Timure alone collected Rs 8.39 billion in revenue from these imports.

The Tatopani checkpoint has seen a similar trend. In April alone, 1,018 EVs were inspected and cleared through the Tatopani Customs Office. Customs Officer Surya Kafle said imports of microbuses and other Chinese EV brands are ongoing. A total of 3,947 EVs have been imported through Tatopani as of April, and since mid-May, the pace of imports has accelerated.

“It is estimated that around 500 EVs will be cleared before May 29,” Kafle said. “Currently, about 500 vehicles are still in the customs yard awaiting inspection, while nearly 200 have already passed.” He added that road damage leading to Tatopani has caused some logistical challenges. “There is no delay from our side,” Kafle clarified, noting that the fear of increased customs duties is driving the current surge.

A senior official at the Ministry of Finance confirmed that raising EV taxes is under serious consideration. “When Yubaraj Khatiwada drastically reduced customs duties on EVs, it became difficult for the government to meet its expenditure needs,” the official said. “We have no other substantial revenue sources, so tightening EV imports seems inevitable.”

According to the official, EV imports have exceeded actual demand, and the government currently lacks a long-term plan for managing EVs after their battery lifespan ends. While the government hints at a tax hike, business groups are actively lobbying to keep rates unchanged.

Last week, the Nepal Chamber of Commerce submitted a formal request to Deputy Prime Minister and Finance Minister Bishnu Prasad Paudel, urging the government not to raise taxes on EVs in the next fiscal year's budget. The chamber emphasized that EVs—ranging from microbuses to heavy equipment—have contributed significantly to environmental protection and support domestic electricity consumption. They argued that EVs also help reduce reliance on petroleum imports and lower maintenance costs, thereby stimulating broader economic activities.

The chamber further recommended that, although the government plans to revise vehicle emission standards from the 2012 policy to adopt Euro 6 norms, public EVs such as buses, microbuses, and agricultural equipment should be exempted from this requirement to encourage their use.