We have made the tax on electric vehicles practical: Finance Minister Mahat

Finance Minister Dr. Prakasharan Mahat has said that to make practical the unreasonable customs tax on electric vehicles in the past, electric vehicles have been taxed by separating them into five categories.

Answering the questions raised in the House of Representatives on the budget for 2080/81, he said that it was not practical to impose 10 percent customs duty up to 100 KW and 30 percent duty after 101 KW was divided into five categories.

Earlier, electric vehicles were divided into four categories and taxed. In which there was a provision of 10 percent customs duty up to 100 kW, 30 percent customs duty between 100 to 200 kW and 30 percent excise duty.

Also, between 200 kW and 300 kW, 45 percent customs duty and 45 percent excise duty were levied, and 60 percent customs duty and 60 percent excise duty were levied on vehicles above 300 kW.

Now only 10 percent customs duty will be charged for up to 50 kW. Also, 15 percent customs duty and 10 percent excise duty will be levied from 50 to 100 kW and 20 percent customs duty and 20 percent excise duty will be levied for 100 kW to 200 kW.

Also, 40 percent customs duty and 45 percent excise duty will be charged for electric vehicles from 200 kW to 300 kW. Similarly, Finance Minister Dr. Mahat said that in case of more than that capacity, it is arranged to charge the same rate as before.

According to him, the customs rate is the same for vehicles of all capacities based on petroleum products. He clarified that there is only a modest difference in the excise duty rate based on the capacity of the vehicle.

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