Vehicle tax in Nepal is a legal obligation for all vehicle owners. If you own a two-wheeler, four-wheeler, or an electric vehicle, you should understand how vehicle tax works to stay compliant and avoid penalties. This article provides a comprehensive guide on vehicle tax in Nepal, including rates, payment procedures, deadlines, and more. We have updated the vehicle tax of 2082.
Overview of Vehicle Tax in Nepal
What is Vehicle Tax?
Vehicle tax is a mandatory annual fee imposed by the Government of Nepal for using vehicles on public roads. It helps fund road maintenance, transportation infrastructure, and environmental management.
Why is Vehicle Tax Important in Nepal?
Vehicle tax ensures that vehicle owners contribute to the upkeep of roadways and environmental sustainability. It also helps the government regulate traffic and enforce emissions standards.
Legal Provisions and Government Authority
The Department of Transport Management (DOTM) under the Ministry of Physical Infrastructure and Transport is responsible for vehicle tax regulations and collections across all provinces.
Types of Vehicle Tax in Nepal
Road Tax (Annual Vehicle Tax)
Every vehicle must pay an annual road tax based on engine capacity, type, and usage (private or commercial). This tax must be renewed every fiscal year.
Customs Duty on Imported Vehicles
Imported vehicles are subject to customs duties based on engine capacity, vehicle type, and brand. Luxury and high-capacity vehicles carry higher customs rates.
Green Tax and Environmental Fees
Some provinces impose a green tax to promote the use of eco-friendly vehicles and reduce pollution. Electric vehicles (EVs) often enjoy reduced or zero green tax.
Vehicle Tax Rates in Nepal
Tax Rates Based on Engine Capacity (cc)
The vehicle tax rate is primarily determined by engine displacement (cc). Here's a general breakdown for motorcycles and scooters:
- Up to 125 cc – NPR 3,000/year
- 126 cc – 150 cc – NPR 5,000/year
- 151 cc – 225 cc – NPR 6,500/year
- 226 cc – 400 cc – NPR 12,000/year
- 401 cc – 650 cc – NPR 25,000/year
- Above 651 cc – NPR 35,000/year
Renewal charges is NPR 300 which will be added on tax amount per year.
For private cars:
- Up to 1000 cc – NPR 22,000/year
- 1001 – 1500 cc – NPR 25,000/year
- 1501 – 2000 cc – NPR 27,000/year
- 2001 – 2500 cc – NPR 37,000/year
- 2501 – 3000 cc – NPR 50,000/year
- 3001 – 3500 cc – NPR 65,000/year
- Above 3501 cc – NPR 70,000/year
Renewal charges is NPR 500 which will be added on tax amount per year.
Tax Rates for Electric Vehicles (EVs)
Electric vehicles enjoy reduced tax rates or are sometimes exempt from annual taxes depending on the province. For instance, electric two-wheelers under 1500W often pay NPR 1,000–2,500 annually. Here’s a detail breakdown of the vehicle tax for two wheelers electric vehicles:
- Up to 50 W – NPR 1,000/year
- 51 – 350 W – NPR 1,500/year
- 351 – 1000 W – NPR 2,000/year
- 1001 – 1500 W – NPR 2,500/year
- 1501W and Above – NPR 3,000/year
For Four Wheeler EVs:
- 10 – 50 KW – NPR 5,000/year
- 51 – 125 KW – NPR 15,000/year
- 126 – 200 KW – NPR 20,000/year
- 201 and Above – NPR 30,000/year
If you are paying your vehicle tax, you should also be aware of the new system of embossed number plates. Here’s a complete guide to Embossed Number Plate in Nepal.
Where and How to Pay Vehicle Tax in Nepal
Offices That Collect Vehicle Tax
Vehicle tax can be paid at:
- Transport Management Offices (e.g., Ekantakuna, Thulobharyang, Itahari, etc.)
- Provincial Transport Offices
- Local government offices in some municipalities
Online Payment Options (eSewa, Khalti, etc.)
Vehicle tax can now be paid online via platforms like:
Required Documents for Vehicle Tax Payment
- Bluebook (Vehicle Registration Certificate)
- Previous tax payment receipt (if applicable)
- Citizenship certificate (for first-time payments)
- Insurance certificate (optional)
Steps to Renew Your Vehicle Tax Online or Offline
- Visit the nearest transport office or login to an approved mobile wallet.
- Enter vehicle registration details.
- Verify tax amount.
- Make the payment and download the receipt.
- Update the bluebook with the latest tax stamp.
Vehicle Tax Payment Deadlines and Penalties
Annual Tax Payment Deadlines by Province
- Most provinces require vehicle tax to be paid before Ashad end (mid-July) each year.
- Late payments after this date will incur penalties.
Penalties for Late Payment
- Penalties range from 5% to 32% of the due tax amount depending on the delay period.
- After multiple years of non-payment, vehicle registration may be suspended.
Tax Clearance and Vehicle Renewal
Tax clearance is mandatory for:
- Bluebook renewal
- Vehicle ownership transfer
- Fitness renewal and insurance
How to Check Vehicle Tax Status Online in Nepal
Using the Transport Management System (DOTM)
You can check your vehicle tax status on the official DOTM portal:
- Visit: https://www.dotm.gov.np
- Enter your vehicle registration number.
- View tax dues, payment history, and validity.
Accessing Tax Details via Mobile Apps
Mobile wallets like eSewa and Khalti allow you to:
- View vehicle tax details
- Pay tax directly
- Get digital receipts for recordkeeping
Frequently Asked Questions (FAQs) on Vehicle Tax in Nepal
Who Needs to Pay Vehicle Tax?
All registered vehicle owners—whether private or commercial—must pay vehicle tax annually.
Is Tax Lower for Electric Vehicles?
Yes. EVs usually enjoy lower tax rates, and some are fully exempt from annual vehicle tax depending on provincial rules.
What Happens if I Don’t Pay My Vehicle Tax on Time?
You’ll be charged late payment penalties, and failure to pay for multiple years can lead to the suspension of your vehicle registration.
Conclusion
Paying our vehicle tax in Nepal is not just a legal requirement—it’s a responsibility of the people of Nepal. With growing digital platforms and clear tax slabs, it's now easier than ever to stay compliant. Regularly renewing our tax not only avoids penalties but also keeps our vehicle legally fit for the road.