Nepal Government Announces 50% Tax Cut on Petroleum Products

Kathmandu. The government has decided to provide a tax exemption on petroleum products. A cabinet meeting held on Tuesday decided to grant a 50 percent exemption on infrastructure and customs duties currently levied on petroleum products. 

Currently, a customs duty of 25 rupees 23 paisa is levied on petrol and 12 rupees 2 paisa on diesel. Similarly, an infrastructure tax of 10 rupees is levied on both petrol and diesel, said Corporation spokesperson Manoj Thakur. 

With this decision, there will be a tax exemption of 17 rupees 50 paisa per liter on petrol and 11 rupees on diesel. Previously, a tax of 66 rupees 98 paisa was levied on one liter of petrol alone. Similarly, 49 rupees 28 paisa tax was levied per liter on diesel. Under this, the state has been collecting additional value-added tax, road maintenance tax, price stabilization fund fee, pollution tax, and green tax.

Likewise, the state collects 324 rupees 95 paisa tax on one cylinder of LP gas used for domestic consumption. The state has also been collecting 34 rupees 48 paisa tax per liter on aviation fuel.