The government has increased taxes on electric vehicles. According to the Economic Bill 2081, the customs duty on electric vehicles has been increased from 5% to 20% and the excise duty from 10%, based on the vehicle’s capacity (in kilowatts).
The government has increased taxes on electric vehicles, citing a surge in demand and revenue loss due to previous tax concessions. However, for vehicles above 200 kilowatts, the excise duty has been reduced instead.
Up to 50 Kilowatts
- Customs duty increased from 10% to 15%
- Excise duty introduced at 5% (previously excise duty-free)
50 to 100 Kilowatts
- Customs duty increased from 15% to 20%
- Excise duty increased from 10% to 15%
100 to 200 Kilowatts
- Customs duty increased from 20% to 30%
- No change in excise duty (remains at 20%)
200 to 300 Kilowatts
- Customs duty increased from 40% to 60%
- Excise duty decreased from 45% to 35%
Above 300 Kilowatts
- Customs duty increased from 60% to 80%
- Excise duty decreased from 60% to 50%
The main reason for the government to increase taxes on electric vehicles is the conclusion that there has been an excessive increase in the demand and usage of electric vehicles, resulting in a loss of revenue.
Reasons for Increasing Taxes on Electric Vehicles
- There has been an excessive increase in the demand and usage of electric vehicles, but a loss of revenue has been concluded.
- The tax concessions provided earlier led to an increase in the import of electric vehicles, but a decrease in revenue was observed.
- There have been allegations of an abnormal increase in the taxes levied on electric vehicles, and taxes that were not supposed to be levied were also imposed.
- The Supreme Court has ruled that the increase in taxes on electric vehicles has exceeded the affordability of the general public.
Therefore, it appears that the government has increased taxes on electric vehicles to control the increasing demand and usage, as well as to increase revenue.
However, this move could impact the accessibility and affordability of electric vehicles for the general public.
