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January 20, 2026

Supreme Court orders government to formulate clear and stable policy to encourage EVs

The Supreme Court has issued an order to overturn the tax policies adopted by the government to discourage electric vehicles (EV). The joint bench of Supreme Court Justice Vinod Sharma and Meghraj Pokharel has issued the order in the name of the government. The Supreme Court has issued a mandate to make a clear and […]

The Supreme Court has issued an order to overturn the tax policies adopted by the government to discourage electric vehicles (EV). The joint bench of Supreme Court Justice Vinod Sharma and Meghraj Pokharel has issued the order in the name of the government.

The Supreme Court has issued a mandate to make a clear and stable policy to encourage the use of electric vehicles. Similarly, a mandate has been issued in the name of the government to arrange cycle lanes and pollution-free transport in cities and to make a long-term action plan for environmental protection.

Nepal Rastra Bank has issued a mandate to cancel the revised instructions on electric vehicle loans issued on 13 January 2025 and the government’s decisions regarding increased tax on electric vehicles.

It was demanded that the National Bank’s decision to change the subsidized loan and payment process for the purchase of electric vehicles should be revoked.

On behalf of Prakashmani Sharma Academy for Public Interest Law, advocates Rupa Basnet, Sanjay Adhikari and Raj Mohan Singh filed the writ against the Office of the Prime Minister and Council of Ministers, Ministry of Finance, Nepal Rastra Bank and Ministry of Forests and Environment.

It was mentioned in the writ that the air pollution due to vehicles running on petroleum products is helping to increase and the level of air pollution in Kathmandu Valley has reached a dangerous level and it is reducing the average life expectancy of the citizens as well as causing thousands of deaths every year.