Finance Minister Swarnim Wagle States Government Will Not Back Down on Electricity VAT

Kathmandu. Finance Minister Swarnim Wagle has stated that the government will not back down from the VAT imposed on electricity. He also said that various options are being discussed so that the final consumers are not put at a disadvantage. He said that an option will be brought by the beginning of the next fiscal year so that the final consumers are not put at a disadvantage. 

Speaking at a 'Post Budget' discussion program organized by the Nepal Economic Journalists Association (NEFEJ) on Monday, he said, 'VAT has come on electricity, it will come, but we are thinking of ways so that consumers are not disadvantaged.' 

Following the provision in the budget for the upcoming fiscal year that consumers consuming more than 50 units of electricity will be taxed, it has been widely criticized. Finance Minister Wagle said that the government has imposed VAT on electricity with great courage. 'Although it was discussed in the past, no one had the courage to implement it,' he said. 

He said that if everything were free or just distributed, it would lead to the situation of Venezuela, and the government has moved towards consumption-based tax. He said, 'We have moved towards consumption-based tax rather than income-based tax.'  

He said that the budget has set the policy direction for 5 years. He said, 'We will add bricks to the economy with good ideas and good intentions.'