Nepali Congress Demands Tax Cuts to Curb Rising Fuel Prices

Kathmandu. The Nepali Congress has demanded that the government control the price of petroleum products by reducing tax rates, citing the impact of rising fuel costs on public life.

The conclusion was reached during a meeting of the Central Working Committee chaired by party leader Gagan Kumar Thapa, which emphasized the need for immediate intervention.

In a statement signed by Congress spokesperson Devraj Ghimire, the party noted that the rise in fuel prices in the international market due to the crisis in the Middle East has directly affected Nepali consumers.

The Congress asserts that the increase in the price of petroleum products and gas has had a widespread impact, ranging from household expenses to business, employment, agricultural production, and the tourism sector.

The Congress has demanded a provision to provide relief and refunds on the Value Added Tax (VAT) that automatically increased with the rise in fuel prices. It is believed that this could mitigate the burden of inflation to some extent. Additionally, the party holds the view that the infrastructure development tax has become irrelevant in the current context and should be abolished.

Similarly, the Congress has urged the government to reduce or eliminate various taxes, including customs, road maintenance and improvement fees, pollution control fees, and green taxes for a specific period. It stated that the current tax structure has created a situation where the Nepal Oil Corporation is forced to purchase at high prices and sell at lower prices, necessitating a clear tax relief policy to resolve the issue.

Emphasizing the need to review the overall tax system and reduce taxes on petroleum products, the Congress has also urged the government to introduce special relief programs to provide respite to students from rising transportation costs.