Government reverses decision to impose VAT on electricity within 2 months
The government is preparing to remove the value-added tax (VAT) imposed on electricity bills. Energy Minister Birajbhakta Shrestha and Finance Minister Dr. Swarnim Wagle have reached a principled agreement to remove the 5 percent VAT on residential customers and the 13 percent VAT on other non-residential customers.
Kathmandu — The government is preparing to remove the value-added tax (VAT) imposed on electricity bills. Energy Minister Birajbhakta Shrestha and Finance Minister Dr. Swarnim Wagle have reached a principled agreement to remove the VAT imposed on electricity bills.
According to a source at the Ministry of Finance, during the meeting between the two ministers, an agreement was reached to remove the 5 percent VAT imposed on residential customers and the 13 percent VAT imposed on other non-residential customers.
The proposal to remove VAT on electricity will be presented at the upcoming Cabinet meeting, and the same meeting will decide to remove the VAT, according to the source.
Earlier, the issue of removing VAT on electricity had reached the Prime Minister. After the Prime Minister appeared positive, a source said that the Ministry of Finance and the Ministry of Energy reached an agreement to remove VAT on electricity.