The government has reduced the customs duty on imported motorcycle parts to boost motorcycle production within Nepal. Under the new regulation, the customs duty on motorcycle parts ranging from 200cc to 250cc has been set at 30 percent, a decrease of 10 percentage points. Conversely, the customs duty on parts for motorcycles between 250cc and 500cc has been increased by 10 percent, reaching 80 percent.
May 3, Kathmandu – The government has adjusted the customs duty on imported parts to encourage complete motorcycle manufacturing in Nepal. This new policy was implemented through the upcoming fiscal year’s budget. The revised customs rates took effect starting May 30, the day after the budget announcement on May 29, reducing the tax on imported parts used in locally assembled motorcycles by 10 percentage points.
Previously, parts imports for motorcycles between 200cc and 250cc were taxed at 40 percent in the current fiscal year, but the rate has now been lowered to 30 percent for the coming fiscal year. However, for parts ranging from 250cc to 400cc, the duty has been increased by 10 percent from 70 percent to 80 percent. Similarly, parts for motorcycles with engine capacities from 400cc to 500cc now face an increased duty of 80 percent.
Manufacturers such as Royal Enfield, Honda, Yamaha, Hero, TVS, and Bajaj import parts and assemble motorcycles locally. These companies have established assembly plants within Nepal, where they assemble bikes from imported components, contributing to domestic production growth.
