The Nepalese government is moving to abolish the value-added tax (VAT) recently imposed on electricity bills. This decision follows a preliminary agreement between the Minister of Energy, Water Resources and Irrigation, Biraj Bhakta Shrestha, and Finance Minister Dr. Swarnim Wagle. The proposed change comes only two months after the implementation of a 5 percent VAT for residential users and a 13 percent rate for industrial and commercial consumers. Officials indicated that the initiative gained momentum following support from the Prime Minister. The policy reversal is expected to be finalized once it receives formal approval from the Cabinet during its next session. The tax was initially introduced as part of the current fiscal year's budget, but the government is now seeking to reverse this measure to alleviate the financial burden on consumers.
Source : Online Khabar
Photo : Online Khabar
