Kulman Ghising Criticizes Tax on Electricity Consumption
Dragon Media Correspondent
Ujyalo Nepal Party Chair Kulman Ghising has criticized the government for imposing additional taxes on electricity used for agricultural irrigation, drinking water supply and household purposes.
In a social media post on Saturday, Ghising said it was unfortunate that consumers were being subjected to a greater tax burden at a time when essential sectors should instead be receiving concessions.
He recalled that during his tenure at the Nepal Electricity Authority, electricity tariffs for irrigation and community drinking water systems had been reduced in order to support agricultural production and improve water supply.
According to Ghising, the electricity tariff for irrigation had been reduced from around Rs 7 per unit to approximately Rs 2 per unit, while the tariff for community drinking water lifting systems had been lowered from Rs 9 to Rs 4.20 per unit.
He said that at a time when households are facing shortages of cooking gas, the government should be encouraging greater use of induction stoves and other electric cooking appliances.
Ghising described it as contradictory for domestically generated electricity to remain underused while citizens are forced to stand in line for imported cooking gas.
He argued that instead of increasing the tax burden on ordinary consumers and farmers, the government should focus on collecting billions of rupees in outstanding dues from large industries for dedicated feeder and trunk line electricity services.
Ghising said increasing electricity consumption is important for the national economy, energy self-reliance and import substitution, and argued that government policy should encourage consumption rather than discourage it through additional taxation.
In his latest statement, Ghising said a 13 percent value-added tax had been imposed on electricity.
However, available details related to the fiscal year 2083/84 budget indicate a provision for a 5 percent value-added tax on consumers using more than 50 units of electricity per month.
Further clarification from the relevant government authorities is therefore needed to determine whether any new or revised provision introducing a 13 percent tax has been implemented.
