Nepal Electricity Authority Seeks Clarification on Value Added Tax

Nepal Electricity Authority has sought clarification from the Inland Revenue Department on whether value added tax (VAT) will be applicable on electricity consumption from Ashar 1 to Ashar 32, 2083, under the Economic Act, 2083.

The authority’s Executive Director, Dhirghayu Kumar Shrestha, has written to the department seeking clarification on whether VAT will be applicable on the monthly electricity consumption based on the meter reading from Ashar 1 to Ashar 32, 2083.

Energy, Water Resources, and Irrigation Minister, Viraj Bhatt Shrestha, had requested the authority to clarify the VAT issue to avoid any confusion. The minister had directed the authority to find a solution that would not be unfair to consumers, while also considering the legal and practical aspects of the issue.

Minister Shrestha had also emphasized that the implementation of VAT should not impose an additional financial burden on consumers and had directed the authority to resolve any confusion immediately.