Scooter Tax in Nepal is essential to understand, as managing various fees and procedures can be tiring. Whether buying a new scooter or already owning one, you must complete the first registration, pay annual road tax, and handle other necessary fees.
In this article, we will guide you through everything you need to know about the taxation of a scooter in Nepal so that you can follow the local government and not have to pay unnecessary additional fines and troubles.
Scooter Registration in Nepal:
Registration of your scooter in Nepal is a mandatory procedure that must be completed within 15 days after purchase. You must register your vehicle at the Department of Transport Management (DoTM) to obtain your blue book and vehicle number. It is a procedure wherein your scooter will be legally recognized and licensed to operate on Nepali roads.
– Documents Needed
You will have to get some of the necessary documents ready for the registration of your scooter in Nepal. You will need your citizenship certificate, PAN card, original dealer’s bill, insurance papers, and customs clearance (if you are importing). Three passport photos, a registration form, and proof of tax payment are also needed.
– Registration Process
In addition to your documents, you will have to go to your local Transport Management Office. Document verification, technical inspection of your scooter, and payment of registration fees are all part of the registration process. You will be issued a temporary registration number before you get your permanent vehicle number and blue book.
Moreover, you should be aware that the registration procedure includes a mandatory technical inspection where officials check your scooter’s chassis number, engine number, and condition. Once successful verification is made, you will have to pay the registration fee based on your scooter’s engine capacity.
The procedure typically takes 35 working days, and you can check the status of your application online through the DoTM portal.
Scooter Tax in Nepal: Road Tax Overview
All the owners of scooters in Nepal need to have a road tax, which is used in the construction and upkeep of the country’s road network. You need to pay the tax annually in order to legally operate your scooter on Nepal’s roads. You can use the Tax rate of Motorcycle in Nepal for Fiscal Year 2078/ 2079 to get the current rates.
– Taxation Rates
Scooter road tax in Nepal varies with the engine capacity and age of your scooter. You will be charged more for scooters with larger engine capacities, and older scooters will need to pay more. The government updates and revises the rates annually, so it would be best to ask about the latest rates before making the payment.
– Payment Process
You may pay your road tax at your local transport office by presenting the blue book of your scooter and citizenship card. It will only take about 3045 minutes, and they will issue a tax clearance sticker which must be affixed to your scooter.
Consequently, you can also make payment online through various digital platforms and mobile banking apps. It is convenient and saves time as you can remit your road tax from anywhere. You will only have to visit the transport office to receive your tax clearance sticker upon successful payment.
Other Charges and Taxes:
Assuming you own a scooter in Nepal, you would be required to pay additional fees and taxes apart from the usual registration charges. According to the Vehicle Tax Rate in Nepal (2081/82), the fees are differential according to the age and capacity of the engine of your scooter. Having knowledge of these additional charges helps you prepare in advance and also prevents you from breaking any local laws.
– Pollution Control Fee
One of the mandatory charges that you will need to pay is the pollution control charge, which is utilized to fund environmental protection initiatives. You need to pay this charge annually when renewing the registration of your scooter. The charge varies based on the age and emission level of your vehicle, typically between NPR 100 and NPR 500 for two-wheelers.
– License Renewal Fees
Renewal of your scooter license involves the payment of an annual fee at your transport office. You must pay the fee before the expiry of your current registration to pay the minimum. The renewal fee depends upon your scooter’s engine capacity and varies between NPR 2,500 and NPR 3,500 for most scooters.
Even though you may renew your license with additional late charges if you are late for renewal, your renewal charge will be 5% more for one month’s delay, 10% for two months’ delay, and 20% for delays exceeding two months. To avoid these additional charges, highlight your renewal reminder and do it on time.
Insurance Requirements:
Insure your scooter and legalize it with Nepal’s insurance laws. Two-wheelers, including scooters, need to be insured according to the Motor Vehicle and Transport Management Act. For other information about registration and tax, click here for Bike Tax in Nepal: Your Ultimate Guide to Rates, Payment, and Procedures.
– Mandatory Insurance Cover
One of your key responsibilities as a scooter owner is to maintain valid third-party liability insurance. The insurance protects you from financial loss as a result of third-party accidents. The minimum cover depends on your scooter’s engine capacity and worth. You are required to renew your insurance annually to remain within the law.
– Choosing an Insurance Company
There are approximately 20 insurance providers in Nepal offering two-wheeler insurance. Compare their premium, claim settlement ratio, and customer service before making a decision. Major market players include Nepal Insurance, National Insurance, and Sagarmatha Insurance.
Insurers offer different coverages and extra benefits for your scooter. You can enhance your basic thirdparty cover with comprehensive policies that offer protection against theft, natural calamities, and personal accidents. While selecting the provider, consider the network of authorized workshops, claim settlement duration, and online service facility.
Fines and Penalties for Noncompliance:
Unlike in most other countries, Nepal has strict enforcement of scooter laws. You’ll have to fulfill all registration and taxation requirements to avoid hefty fines. Traffic police conduct regular checks, and you’ll be fined on the spot if you’re caught in violation of these laws. If you’d like to learn more about compliant scooter models, you can visit MAW Two Wheelers.
– Common Violations
Against the rules, the majority of the motorcyclists in Nepal make the mistake of not renewing their road tax in time or riding without registration papers. You can also be fined for not properly displaying your registration number plate, for lacking insurance, or for not possessing your Blue Book. These violations are checked regularly during the routine traffic checkups.
– Penalty Amounts
For enforcement of compliance, the Department of Transport Management (DoTM) has set some of the fine rates for different offenses. You’ll be charged NPR 1,0005,000 for driving without registration, NPR 5002,000 for unpaid road tax, and NPR 1,500 for failing to produce documents. This excellent system is cumulative, with the next offenders paying higher fines.
You should know that the amounts are cumulative in case there are more than one breach found at the same time. Your scooter can be confiscated by the traffic police until such time that all the charges are settled and the required documents are presented.
Online Tax Payment and Digital Services:
For your convenience, Nepal has embraced digitalization in the payment of scooter tax with different online websites and mobile applications. You can now pay your scooter tax in Nepal and associated services without visiting offices. These online websites are convenient for you and provide a more efficient way of handling your vehicle compliance.
– Government Portals
You can pay the scooter tax in Nepal online on government portals like transport.lumbini.gov.np and dotm.gov.np. You need to register with your vehicle number and citizenship number. The websites offer end-to-end services, from tax calculation to payment and receipt. You can check maw2wheelers.com for all the details of scooter models and tax slabs.
– Mobile Applications
You can download government-approved apps like eSewa, Khalti, and IME Pay on your mobile to pay your scooter tax in Nepal. The apps are simple to use and offer secure payment gateways, so you can make payments anywhere. Payment reminders and electronic receipts are also offered by most apps. The mobile applications offer additional services such as tax calculators, payment deadline reminders, and direct contact with the transport authority.
You can even see your payment history, download your transaction reports, and receive notifications when there are new policy updates or tax rate changes. The applications offer various payment options such as digital wallets, bank transfers, and credit cards.
In summary
Considering everything, your experience with scooter tax in Nepal system should be keen to various details, from registration to annual renewals.
You will find the process to be straightforward when you follow the right procedures and timely payments. With an understanding of your tax obligations and your records being up to date, you’re free to enjoy hassle-free driving on Nepal’s roads.
You can browse the latest scooter models and detailed specifications at MAW Two Wheelers. Your compliance with these tips ensures both legal operation and contribution toward the country’s infrastructure growth.
FAQ:
Q: What is the tax requirement and cost of registering a new scooter in Nepal?
A: The tax liability for registering a new scooter in Nepal consists of a number of factors:
1. Onetime Vehicle Registration Tax:
● 11% of the invoice value of the scooter for scooters with up to 125cc
● 13% for scooters with engine capacity from 126cc to 250cc
● 2% extra for higher engine capacities
2. Value Added Tax (VAT):
● 13% of the invoice price of the scooter
3. Local Development Fee: 1.5% of the invoice amount
4. Road Construction Fee: NPR 3,000 for scooters of 125cc and below NPR 5,000 for scooters of 126cc to 250cc You may go to MAW Two Wheelers to see the new scooter models and their prices to determine the taxes.
The registration must be completed within 15 days of purchasing the scooter at the regional Transport Management Office. There may be additional charges for late registration.
Q: What is the procedure of the yearly road tax system for scooters in Nepal and when is it paid?
A: Nepal’s tax on road for scooters is on a midJuly to midJuly fiscal year basis and depends upon the engine size:
1. Tax Rates:
● Less than 125cc: NPR 2,800 annually
● 126cc to 250cc: NPR 4,000 annually
● Over 250cc: NPR 5,500 annually
2. Payment Schedule:
Due date: Within the first three months of the new fiscal year (by mid October)
Early payment discount: 10% if paid within the first month
Late payment penalties:
● 5% additional charge for payment within 35 days after due date
● 10% additional charge for payment within 70 days after due date
● 20% additional charge for payment over 70 days
You can pay your road tax at:
● Department of Transport Management offices
● Online using DOTM portal
● Authorized banks and financial institutions
Keep your payment receipts and registration documents up to date for regular traffic checks.
Q: What are the additional taxes and charges levied when transferring ownership of a secondhand scooter in Nepal?
A: There are the following taxes and charges when transferring ownership of a secondhand scooter in Nepal:
1. Transfer Tax:
● 2% of govt. valuation of the scooter
● Basis of assessment in terms of depreciation rates as fixed by Transport Department
● Additional 1% if transfer outside first registration area
2. Compulsory document fees:
● Application fee: NPR 500
● Renewal of the ownership certificate: NPR 1,000
● Issuance of new blue book: NPR 1,500
● Police report verification: NPR 500
3. Other Factors:
● All tax dues are to be paid before transfer
● Both parties must be present for transfer
● Transfer within 15 days of sales agreement
● Notary verification fee: NPR 5001,000
● Insurance transfer fee: Varies according to the service provider
The whole process can be carried out at your local Transport Management Office or by authorized service providers. For the current market prices of secondhand scooters, you can refer to MAW Two Wheelers or local dealers.
Transfer of ownership will be 35 working days depending on verification of documentation and tax clearance. Keeping the documentation of sale agreement and payment of tax open for future reference purposes is recommended.
