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 32, 2083, under the Economic Act, 2083.

The authority’s Executive Director, Dirgha Kumar Shrestha, has written to the department seeking clarification on whether VAT will be applicable on the consumption of electricity during this period, based on the monthly readings.

Minister for Energy, Water Resources and Irrigation, Viraj Bhatt Shrestha, had requested the authority to clarify the issue of VAT, citing confusion over its implementation. The minister directed the authority to find a solution that would not cause injustice to consumers, while also ensuring that the law is followed.

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