Energy Minister Urges Finance Ministry for Tax Measures Without Burdening Public

Kathmandu. Energy, Water Resources and Irrigation Minister Biraj Bhakta Shrestha has said that he has urged the Ministry of Finance to arrange taxes on electricity in a way that does not impose further financial burden on the public. He stated that he had to make such a request to the Ministry of Finance amidst widespread criticism following the new fiscal year's budget introduced by the government, which included provisions for additional taxes on electricity.

Minister Shrestha clarified that the government wants to strictly advance the tax-related arrangements to establish financial good governance in the Nepal Electricity Authority. He also claimed that the government's decision would not affect citizens at the basic level.

Speaking in the house, Minister Shrestha said, 'From a financial good governance perspective, the state must either bring it under the tax net or increase the tax base. For bringing the authority under financial good governance, I have also requested the Ministry of Finance that if the issue of financial good governance comes up without imposing an additional burden on the public, without imposing a financial burden, then you will also be able to look at its income and expenditure. The matter of the board meeting from fiscal year 58 is also coming up now. If you look for something in terms of financial good governance in things that have been happening in such a traditional way, there is no account of it. Since the issue of revenue is related to the revenue department of the Ministry of Finance, what we have requested is that among approximately 5.6 million customers, if it is done at 50 units, it will affect 1.6 million people. If it is done at 150 units, it will affect very few, and again, this has not affected the service recipients who use electricity services at the basic level. There is no other reason to impose tax on this, it is for financial good governance.'

Minister Shrestha revealed that the Nepal Electricity Authority has not yet had a real accounting of its income and expenditure. He stated that the issue related to the tax base has been advanced to make the financial aspect within the authority transparent and to establish financial good governance, as work has been proceeding in a traditional style.