Personal Legal Updates

Vehicle Tax in Nepal: Everything You Need to Know for 2081

by Khatapana

Jan 1, 2025 - 3 min read

Vehicle Tax in Nepal: Everything You Need to Know for 2081

Paying vehicle tax in Nepal is a vital responsibility for all vehicle owners. Beyond compliance, it contributes to the country’s infrastructure development and road safety. However, understanding the tax structure, rates, and processes can be challenging due to provincial variations. And you can renew your vehicle's bluebook only after paying the taxes.

This guide simplifies everything about vehicle tax in Nepal, from updated rates to payment methods, ensuring you stay informed and penalty-free.

What Is Vehicle Tax in Nepal?

Vehicle tax in Nepal is an annual levy imposed on all registered vehicles, ranging from bikes and motorcycles to electric cars. The tax amount depends on factors such as:

Vehicle type (e.g., motorcycle, car, or electric vehicle).
Engine capacity or motor wattage.
Province of registration.

Who Manages Vehicle Tax in Nepal?

Vehicle tax is set and collected by provincial governments under Nepal's federal structure. Provincial Transport Management Offices handle tax collection, and the revenue is split between provincial and local governments.

60% is retained by the provincial government.
40% is transferred to local governments as directed by the National Natural Resources and Fiscal Commission.

Updated Vehicle Tax Rates for 2081/82 (2024/2025)

The vehicle tax rates vary by province, but here’s a general overview:

1. Motorcycles and Scooters

Engine Capacity (CC)	Annual Tax (NPR)
Up to 125 CC	2,500 – 3,000
126 CC – 150 CC	4,000 – 5,000
151 CC – 225 CC	6,500
226 CC – 400 CC	8,000 – 11,000
Above 400 CC	20,000+

2. Private Four-Wheelers

Engine Capacity (CC)	Annual Tax (NPR)
Up to 1,000 CC	15,000 – 18,000
1,001 CC – 1,500 CC	22,000 – 25,000
1,501 CC – 2,000 CC	30,000 – 35,000
2,001 CC – 2,500 CC	40,000 – 45,000
Above 2,500 CC	50,000+

3. Electric Vehicles

Electric vehicles are taxed based on motor wattage:

Motor Wattage	Annual Tax (NPR)
350W – 1,000W	2,000
1,001W – 1,500W	2,500
Above 1,500W	3,000

How to Pay Vehicle Tax in Nepal

There are two primary methods to pay your vehicle tax: online and offline.

1. Online Payment

Skip the lines and pay your taxes online using these platforms:

a. Nagarik App

Download the Nagarik App from the Play Store or App Store.
Register with your citizenship details.
Navigate to the "Vehicle Tax" section and input your vehicle details.
Pay the tax amount using linked bank accounts or mobile wallets.

b. Digital Wallets and Online Platforms (Khatapana, eSewa, Khalti, etc.)

Open your digital wallet app or Khatapana app.
Select the "Vehicle Tax" option.
Enter your Bluebook number and verify details.
Complete the payment and download the receipt.

2. Offline Payment

For those who prefer the traditional method:

Visit the Transport Management Office (TMO) in your province.
- Motorcycles: Ekantakuna, Lalitpur.
- Other vehicles: Provincial TMOs.
Carry essential documents, including your Bluebook, citizenship ID, and insurance papers.
Pay the calculated tax at the counter.
Collect your updated Bluebook.

Penalties for Late Payment

Failing to renew vehicle tax on time can result in:

Fines ranging from 10% to 32% of the due tax amount.
Possible suspension of vehicle registration.

FAQs on Vehicle Tax in Nepal

1. Is vehicle tax uniform across provinces?
No, tax rates may vary slightly based on provincial policies.

2. Can I pay vehicle tax online if I’m outside Kathmandu?
Yes, online platforms like Khalti and Nagarik App work across provinces.

3. What documents are required for tax payment?
Your Bluebook, a valid ID, and insurance papers are necessary.

4. How often do I need to pay vehicle tax?
Vehicle tax must be paid annually.

Paying your vehicle tax on time is more than just a legal obligation—it ensures smooth vehicle operations and contributes to Nepal’s infrastructure development. With both online and offline options available, the process is now more convenient than ever.