The government has reduced the tax rate on motorcycles and scooters with a capacity of less than 200 cc. Announcing the budget for the fiscal year 2079/80 on Sunday, Finance Minister Janardan Sharma said the government has reduced excise duty on motorcycles and scooters between 125 and 200 cc by 10 percent.
The government has reduced the excise duty from 50 percent to 40 percent. However, the government has increased excise duty on 200 to 250 cc motorcycles by 20 per cent to 80 per cent. Earlier, it was 60 percent. The budget has increased the customs duty on motorcycles from 200 to 250 cc from 30 percent to 40 percent.
Earlier, 30 percent customs duty was levied on all motorcycles, but now it has been increased from 251 cc to 500 cc to 70 percent. Excise duty has been increased to 80 percent in this range.
All motorcycles above 501 cc will be subject to 80 percent customs duty and 100 percent excise duty. The price of bikes above 200 cc is going to go up while the price of bikes below 200 cc is going to go down.