Nepal Electricity Authority Implements 5% VAT on Household Electricity Consumption Above 50 Units

Kathmandu. Nepal Electricity Authority has decided to implement a 5 percent value-added tax (VAT) on the bills of domestic customers consuming more than 50 units of electricity from today. The authority stated that it has updated its billing system to implement the new arrangement.

Finance Minister Dr. Swarnim Wagle had imposed additional electricity tax in the budget presented in parliament on Jestha 15.

According to the government's decision, VAT will not be levied on electricity bills for the first 50 units. The 5 percent VAT will be added only to the electricity tariff applicable to consumption above that.

Under this arrangement, customers using less than 50 units of electricity per month will not fall under the additional VAT bracket. However, consumers who consume 51 units or more of electricity will have to pay the additional VAT.

According to the Nepal Electricity Authority, the number of customers consuming up to 50 units of electricity across the country is more than 3 million.