FNCCI Urges Government to Withdraw VAT on Electricity, Citing Rising Business Costs
Summary
FNCCI has urged the government to withdraw VAT on electricity, saying the tax is raising production and operating costs for businesses across industries, hotels and tourism. The federation also wants reliable power supply and a simpler tax adjustment and refund process.
Key Points
- FNCCI has asked the government to withdraw VAT on electricity from fiscal year 2083/84, arguing that the tax is increasing business costs.
- The federation says high electricity costs are hurting cash flow, competitiveness, working capital, and new investment across sectors including SMEs, hotels and tourism.
- FNCCI called for reliable, quality electricity supply, citing voltage fluctuations and unexpected outages that can damage production and machinery.
- It urged the government to review the policy with the private sector and simplify VAT adjustment and refund procedures.
