- Govt has reduced excise duty on 200cc-400cc motorcycles.
- It has also reduced Road Development Tax (RDT) for 250cc-400cc class motorcycles.
- There will be a drastic price decrease in the market price of higher cc motorcycles.
Great news for people shopping for higher cc bikes in Nepal.
The government has brought forward interesting changes in the Budget 2080/81, specifically addressing the 200cc to 400cc category motorcycles.
There is a drastic reduction in both Excise Duty and Road Development Tax for the upcoming fiscal year. Note that the excise duty and RDT on bikes below the 200cc category will remain unchanged.
Excise Duty Reduction
As per the new policy, the excise duty for 200cc-250cc has been reduced by 20%. Previously, the excise duty was maintained at 80%.
However, the excise duty on 200cc-250cc for the upcoming fiscal year is set at 60%.
Similarly, the excise duty for 250cc-400cc has also been reduced by 20%. That brings the duty charge from 90% down to 70%.
Moreover, the excise duty on motorcycles assembled in Nepal has been fixed at 30%.
Road Development Tax Reduction
Interestingly, there is also a further reduction in the Road Development Tax.
250cc-400cc category bikes get an RDT reduction of Rs. 30,000! This brings the tax down from Rs. 50,000 to just. Rs. 20,000.
However, the policies have raised RDT on above 400cc class motorcycles. 10% of the bike MRP will be levied on bikes of this category.
We will likely see those changes in other brands in the coming weeks.