The Authority has written a letter to the Department formally requesting an opinion, seeking a clear legal interpretation on whether VAT should be applied or not when the electricity bill for consumption in Asar is issued in Shrawan.
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The Nepal Electricity Authority has sought an opinion from the Inland Revenue Department regarding the inclusion of Value Added Tax (VAT) in electricity charges.
The Authority has written a letter to the Department formally requesting clarification on whether VAT should be applied to electricity bills for consumption in Asar when the bills are issued in Shrawan. Additionally, the Authority has stated that it has also sought the Department's position on whether VAT should be applied to the minimum demand charge.
According to the Authority, necessary price adjustments will be made in next month's bills based on the official opinion received from the Department.
Although the Economic Act, 2083 stipulates that VAT will be applied to electricity from Shrawan 1, Minister for Energy, Water Resources and Irrigation Biraj Bhakta Shrestha has also expressed concern over public complaints regarding VAT being added to bills for electricity consumed in Asar.
