Is Motorbike a Luxury or a Need?

As motorcycle has become a necessity for the public, the government has continued to tax it highly like luxury items. Bikalpa conducted study on motorcycle taxation to understand the reason behind such policy of the government and its implication on the economy and general public. All the three tiers of government: Federal, State and Local government collect taxes on Motorbike. Customs duty, Excise and VAT are levied and collected by the Federal, and both State and Local can levy the motor vehicle taxes according to Intergovernmental Fiscal Arrangement Act 2017. This makes it costlier both in terms of time and money for an average Nepalese national to buy a bike compared to an average Indian national. Even though the average Indian citizen has twice the purchasing power of her Nepalese equivalent, the Nepalese citizen must pay twice as much for a motorbike both in terms of time and cost.