The Department of Transport Management has made three categories of taxis in Nepal. At the same time, new decisions have been made on tax registration in terms of CCs in a sweeping move.
The policy has categorized taxis in ordinary, deluxe, and luxury in Nepal on the basis of their minimum CCs of 1000, 1200, and 2000 and above. And for electric vehicles, they must have at least 40 kW motor capacity for registration as a taxi. The decision has been made to improve the safety and efficiency of transport.
Likewise, taxis must have an embossed number plate. Likewise, a taxi must also have yellow paint on the roof.
The new taxi-related standards were approved on Chaitra 14. But it will come into implementation after it’s released in the National Gazette (Rajpatra).
Category of taxis for registration based on CCs
Combustion engine-run taxis are categorized into ordinary, deluxe, and luxury on the basis of their minimum CCs as 1000, 1200, and 2000 and above. Luxury cars are allowed to take over 100% of the fare. This facility was not available to them before.
| Category | Combustion engine (CC) | Electric Vehicles (Motor power) |
| Ordinary | 1000 | 40 kW |
| Deluxe | 1200 | 50 kW |
| Luxury | 2000 | 100 kW |
The policy mandates that deluxe and luxury taxis must have Anti-lock Braking System (ABS) with Electronic Brake Force Distribution (EBD), driver and co-driver airbags (at least two), high-speed alert system, and seatbelts. They are also required to have parking sensors and rear-view cameras, and CCTV cameras. These help ensure the safety of drivers and passengers.
For EVs, the same categories apply but with differing motor power. The ordinary taxis are to have at least 40 kW power, Deluxe 50 kW, and Luxury 100 kW. Check out: What is ADAS in cars? All Explained | Level 0 to 5
How to register taxis in Nepal?
Interested vehicle owner can register their taxi using the following steps:
- First, one needs to visit the vehicle registration office with documents
- The office checks and verifies the details
- Then, the taxi is registered by the office if it meets all the criteria
It’s said that the currently operating taxis must implement the registration process duly within six months after the policy comes into effect. Otherwise, it’s warned that the road permit, driving license can be revoked by the registration office and other authorized agencies.
Also: Best Electric Cars Price in Nepal | Update April 2025
How to recognize a taxi’s category?
You can recognize the taxi category in Nepal by the stickers on them. The Department of Transport Management has provisioned different stickers for different types of taxis. According to the policy, general or ordinary taxis must have an “O” sticker on their cars, while Deluxe and Luxury taxis must have “D” and “Y” stickers pasted on them.
Additionally, such stickers must be pasted on 4 different places – the top corner of the glass on the driver’s side, the right door on the back, the left door, and on the left bottom corner of the rear glass.
According to the central DOTM office, the stickers must be 80×80 mm in size, visible enough for passengers from a distance.
The new taxi categorization has an impact on current vehicles
The new taxi registration criteria will impact taxis that are currently operating because of the CCs. Because many plying the roads at present have below 1000CC capacity, which makes them ineligible for registration as taxis.
If the policy does come into implementation under the current criteria, thousands of these “low-capacity” taxis will be ruled out as illegitimate and will be subject to fines. So, time will tell if the policy will be revised to accommodate these vehicles.
The policy is expected to enhance safety for drivers and passengers and also improve transport facilities.