How to avoid fine on Bluebook renewal, Vehicle Tax payment and Pollution Check in Nepal?

In my reflections as a blogger, I often wonder why, despite my best efforts, I consistently end up paying fines during vehicle tax payment and blue book renewal. My understanding was rooted in the belief that taxes should be settled within a specified period during the Fiscal Year. Perhaps, my immersion in Income Tax matters led me to assume that we had a generous 90-day window at the close of the Fiscal Year to fulfill our obligations.

As many of you know, the Fiscal Year in Nepal commences on Shrawan 1 and concludes at the end of Ashad. Accordingly, the standard due date would be at the end of Ashoj.

However, my recent visit to the Transport Management Office proved otherwise. I was confident that I wouldn't have to dig too deep into my pockets to cover fines. To my surprise, I was slapped with a hefty 20% fine for tax and a whopping 100% fine for Blue Book renewal. It felt exorbitant and left me with an additional Rs. 6,400 less in my hard-earned money, all due to my confusion about how Vehicle Tax operates.

Hence, this blog aims to spare you from falling into the same pitfall. I implore you to be diligent in understanding how the Vehicle Tax regime functions. Trust me, it's simpler than it seems.

Blue Book Renewal:

The renewal of Blue Books should occur within 90 days from your vehicle's registration date or by the end of Chaitra, whichever comes first.

For example, if your vehicle was registered on the 15th of Bhadra 2080, you must renew it by the 13th of Mangsir 2080. This pattern continues each year, with 90 days counted from the 15th of Bhadra. However, this 90-day rule does not apply to vehicles registered between Chaitra, Baishak, Jestha or Ashad. In these cases, renewal must be completed before Chaitra ends.

You can also refer to your Blue Book for the expiration date, as officers usually note it during your renewals.

Vehicle Tax:

The due date for Vehicle Tax is within 90 days from the renewal date stated in the Blue Book, or by the end of Chaitra, whichever is earlier. Unlike the Blue Book, the renewal date is not linked to the registration date. Instead, it should be completed within 90 days of the actual tax deposit.

Please note that the renewal dates for Blue Book and Vehicle Tax might differ based on when your vehicle was registered versus when you paid your initial vehicle tax.

Fine for not renewing Blue Book and paying vehicle tax within renewal date incl. grace period, if applicable:

• Not paid within 30 days after the end of the 90-day grace period: 5% fine
• Not paid within 45 days after the end of the period per (1) above: 10% fine
• Not paid by the end of Ashad: 20% fine
• Not paid within 5 years after the completion of Ashad: Additional 32% for each fiscal year

For vehicles over 14 years old, an additional 5% tax will be levied for each extra year.

Pollution Check:

Vehicle Pollution Checks must be conducted within 7 days of the sticker expiry date. Failure to do so within 30 days of expiry will result in a fine double the usual service fee. If 30 days pass, the fine ranges from NRs 1000 to NRs 2000.

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