Federation Urges Government to Withdraw VAT on Electricity
Summary
The Federation of Nepalese Chambers of Commerce and Industry has urged the government to withdraw VAT on electricity tariff, saying the tax is raising production costs and squeezing working capital. It also asked for reliable power supply and a simpler, faster tax refund process.
Key Points
- The Federation of Nepalese Chambers of Commerce and Industry has called on the government to remove VAT from electricity tariffs in the current fiscal year.
- It says the tax has raised production costs, operating expenses, cash flow pressure, and reduced business competitiveness, especially for energy-intensive industries and the hotel and tourism sectors.
- Businessmen say input tax credit and refund procedures are too slow and incomplete, leaving many unable to fully adjust the VAT paid on electricity.
- The Federation also asked the government to ensure regular and reliable electricity supply and to reduce damage caused by voltage fluctuations and power outages.
