Ujyalo Party Nepal Chairman Kulman Ghising Criticizes Government's Electricity Consumption Tax

Kathmandu. Ujyalo Party Nepal Chairman Kulman Ghising has accused the government of taking steps to discourage electricity use instead of bringing incentive-based policies to increase electricity consumption.

He said on social media – 'The government, through the budget for the upcoming fiscal year 2083-84, has decided to impose a 5 percent value-added tax on consumers who consume more than 50 units of electricity per month. This decision is against the interests of general consumers, against the goal of energy transformation, and against the national campaign to increase the use of clean energy produced domestically.'

He stated that at a time when electricity consumption is increasing for domestic purposes with the expansion of electricity access in Nepal, the government is trying to punish consumers by adding an extra tax burden instead of encouraging the use of electricity for cooking, heating water, and other domestic purposes.

Most customers consuming more than 50 units per month are general domestic consumers. In such a situation, the decision to impose tax will increase the monthly expenses of millions of families and make kitchens more expensive. Instead of bringing incentive-based policies to increase the consumption of electricity produced domestically, the government has taken steps to discourage electricity use. This could reduce the use of appliances like electric stoves and increase dependence on LP gas again, which is not in line with the goals of national energy security, reducing trade deficits, and building a green economy, he said.

Stating that it is necessary to increase domestic electricity consumption, he said that for that, electricity tariffs should be made more equitable, progressive, and consumer-friendly.

He has demanded that the government immediately withdraw this additional 5 percent tax imposed on electricity consumers for the use of domestic electricity, promotion of clean green energy, and in the interest of general consumers.