Government Imposes 5% VAT on Electricity Consumption Above 50 Units, Faces Criticism
Summary
The Nepalese government has imposed a 5% VAT on electricity consumption exceeding 50 units, sparking criticism and prompting a tariff review to ease financial burdens on consumers.
Key Points
- The government imposed a 5% VAT on electricity consumption above 50 units starting Shrawan 1, sparking criticism.
- Finance Minister Dr. Swarnim Wagle introduced the VAT provision without prior discussion with Energy Minister Biraj Bhakta Shrestha.
- Energy Minister Shrestha has initiated a tariff review to align electricity prices with the VAT and encourage increased consumption.
- A committee led by Anshukiran Shahi is set to propose new tariff rates with seasonal differences within 15 days for Electricity Regulatory Commission approval.
