Government Increases Annual Income Tax Rate for Rental Vehicles

Kathmandu. The government has significantly increased the annual income tax rate for various types of vehicles used for rent. The government has increased the cost of public and commercial vehicles by revising the annual tax rate that owners have to pay when registering or renewing vehicles through the Transport Management Office. The tax on small to large and electric vehicles has been increased by 1,000 to 2,500 rupees. According to the new rate, the tax for cars, jeeps, vans, and microbuses up to 1300cc has increased from 5,500 to 6,500 rupees. Similarly, for 1301 to 2000cc, the tax is 7,000 rupees, for 2001 to 2900cc, it is 7,500 rupees, for 2901 to 4000cc, it is 9,500 rupees, and for such vehicles above 4000cc, the annual tax has been set at 11,000 rupees. Previously, the tax for these vehicles was only 6,000, 6,500, 8,000, and 9,000 rupees respectively. There has also been a large increase in the tax for medium and large cargo and public vehicles. The tax for mini trucks, mini buses, and water tankers has been increased from 8,000 to 9,500 rupees, while the tax for mini tippers has been increased from 9,000 to 11,000 rupees. Large trucks and buses will now have to pay 12,500 rupees instead of 10,500 rupees. Similarly, the tax for heavy machinery equipment such as dozers, excavators, loaders, rollers, cranes, and oil tankers, gas bullets, and tippers has increased from the previous 15,500 rupees to 17,500 rupees. The tax for small and agricultural vehicles has also increased by 1,000 rupees. The tax for tractors, auto rickshaws, three-wheelers, and tempos has increased from 2,500 to 3,500 rupees, while the tax for power tillers has increased from 2,000 to 3,000 rupees. For electric vehicles, the tax has been set at 4,000 rupees for up to 50 kW, 5,000 rupees for 50 to 125 kW, 7,500 rupees for 125 to 200 kW, and 9,500 rupees for above 200 kW. The new tax for electric e-rickshaws has been set at 3,500 rupees and for rented two-wheeled vehicles at 3,000 rupees.