Finance Minister's Promise on Electricity Price Unfulfilled as 5% VAT Implemented
Summary
Finance Minister Dr. Swarnim Wagle's announcement that electricity prices would not increase for end consumers remains unfulfilled as a 5% VAT on consumption over 50 units is implemented, causing a rise in electricity costs despite earlier promises.
Key Points
- Finance Minister Dr. Swarnim Wagle announced a 5% VAT on domestic electricity consumers using over 50 units starting this fiscal year.
- The VAT has come into effect despite the Minister's promise to prevent any price increase for end consumers.
- The Nepal Electricity Authority has implemented the VAT in its billing system, charging 5% on consumption above 50 units and 13% for other consumers.
- The Electricity Regulatory Commission has not adjusted tariffs as promised due to the absence of office bearers, leaving consumers with increased electricity costs.
