Kathmandu. Minister for Energy, Water Resources and Irrigation Biraj Bhakta Shrestha has expressed serious concern over the complaints that the value added tax (VAT) has been imposed on electricity power from July 17 as per the Finance Act, 2083.

After receiving widespread complaints from consumers about the inclusion of VAT while issuing electricity bills in the third week of July, Minister Shrestha directed the Nepal Electricity Authority (NEA) to clarify the legal and practical aspects of the issue and find a solution to the issue without causing injustice to the consumers.

Stressing that additional financial burden should not be put on consumers in course of tax implementation, Minister Shrestha directed the concerned authorities to immediately clear the confusion.

Following Minister Shrestha’s directive, the Nepal Electricity Authority (NEA) has sought a clear legal explanation from the Inland Revenue Department (IRD) on whether VAT will be levied or not when the electricity bill is issued in the month of July. The authority has also sought the department’s opinion on whether VAT will be applicable even in the minimum demand charge.

According to the NEA, the necessary price adjustment will be made in the bill for the coming month based on the official opinion received from the Inland Revenue Department. This is expected to resolve the complaints raised by the consumers.