KATHMANDU, May 30: Chairman of Ujyalo Nepal Party Kulman Ghising urged the government to immediately revoke its decision to slap 5 percent value added tax (VAT) on the consumption of electricity by the general public.
Ghising, who is also a former energy minister and executive director of the Nepal Electricity Authority, criticized the government’s decision to impose 5 percent VAT on consumers who consume more than 50 units of electricity per month. The budget for the Fiscal Year 2026/27 has introduced the policy which is against the interests of citizens and the country, according to Ghising.
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Ghising, who is attributed to making the country load-shedding-free, expressed the view on Saturday, the next day of the budget announcement. “While the government talks about increasing consumption of electricity produced within the country, the government has rather taken steps to discourage the use of electricity. This may reduce the use of appliances such as electric stoves and increase dependence on LP gas again, which is not compatible with the goals of national energy security, reducing trade deficits and building a green economy.”
Ghising added that increasing domestic consumption of electricity is the need of the day. For this purpose, the electricity tariffs should be made fairer, progressive and consumer friendly, but not adding new tax burdens. “Therefore, I strongly request the government to immediately withdraw this additional five percent VAT tax imposed on electricity consumers for the use of indigenous electricity, promotion of clean green energy and the welfare of common consumers.”
