High prices for consumers on subsidized electric stoves

Since the financial year 078/79, the customs rate is 1 percent and the value added tax (VAT) is 13 percent. The government has been saying that this policy has been put forward with the expectation that by reducing the customs duty on imported electric stoves, consumers will be able to buy them at a cheaper price and electricity consumption will also increase. But despite reducing the tax rate, consumers have not been able to get that facility.

In 11 months of the current financial year, 1 lakh 8 thousand induction stoves worth 228.5 million rupees have been imported. 3 crore 24 lakh 47 thousand rupees revenue was raised from imports. According to the data of the customs department, the average price of an induction stove is Rs 2395. According to the department, 44 thousand 755 infrared stoves worth Rs 9 crore 28 lakh 32 thousand were imported in 11 months. For that, a revenue of 1 crore 32 lakh 62 thousand rupees was raised. In this way, the average price of an infrared stove is 2371 rupees.

The market value of the electric stove and the valuation amount disclosed during customs clearance do not match at all. The market value is more than double the customs valuation. The wholesale price of induction stoves of any company in the market starts from 3 thousand rupees. The price of infrared stove is more than 3500 rupees.

According to the Black Market Act, traders can sell goods at an increase of up to 20 percent of the cost price. But it has been found that electric stoves are being sold at a markup of more than 20 percent. Therefore, if this price revealed during the customs inspection is compared with the market price, the consumer does not get the direct benefit of the reduced customs duty by the government. According to Chaudhary Group's CG Digital website, the price of Midea brand induction stove ranges from Rs 3,550 to Rs 5,860. It is mentioned on the website that there is a discount of up to 16 percent according to the variant of the stove.

The price of induction stove of Kent brand ranges from 45 hundred 10 rupees to 55 hundred 70 rupees. CG Digital has given a 5 percent discount on this. The price of CG brand single-sided and double-sided induction stoves ranges from Rs. 4,000 to Rs. 14,000. A 12 percent discount has been given on this. E-commerce platform Daraz said that the price of Baltra brand induction stove ranges from Rs 3525 to Rs 5575.

The government reduced the customs duty on induction stoves by 4 percentage points through the Economic Act of the financial year 078/79. Earlier, 5% customs duty was levied on the import of induction, but it was reduced to 1% through the budget of the current financial year. In this way, the purpose of reducing customs duty was to increase electricity consumption. The government had reduced the customs duty by saying that cooking gas would be replaced by induction.

The government had reduced the customs rate on these items in the financial year 077/78 as well. In the financial year 076/77, the customs rate for electrical materials like induction was 15 percent, but it was reduced by 10 percentage points to 5 percent. In just three financial years, the customs duty on induction and infrared stoves has been reduced by 14 percentage points and now it has been maintained at only 1 percent. Since the financial year 078/79, import of electric stoves has been subject to customs duty of 1 percent and value added tax (VAT) of only 13 percent. Other electric stoves will be subject to 5 percent customs duty and 13 percent VAT.

From the financial year 076/77 to May of the current financial year, 681 thousand 804 electric stoves have been imported according to the data of the customs department. In the financial year 076/77, only 10,435 induction stoves were imported. In the financial year 077/78, there is a data of the department that a total of 1 lakh 55 thousand 590 electric stoves including induction, infrared and others were imported. In the financial year 078/79, a total of 167 thousand 179 induction, infrared and others were done. In the last financial year, 2 lakh 6 thousand 687 induction, infrared and other stoves have been imported. The data of the department has imported 1 lakh 54 thousand 798 electric stoves in 11 months of the current financial year.

The government's policy is to replace imported gas with domestically produced electricity. The Alternative Energy Promotion Center under the Ministry of Energy, Water Resources and Irrigation distributed 4,225 electric stoves to students from tribal, Dalit, tribal and endangered communities and students from remote areas studying in government campuses in Kathmandu. According to the center, it was said that it would be distributed this year according to the program of the previous financial year, but it could not be distributed. Navraj Dhakal, executive director of the center, said that 4200 more will be distributed to the students. It was said that the stove purchased at that time would be distributed. It was difficult to choose because of the high demand, so it was delayed, 'Now we will distribute them in July-August.' has taken For five years from the current fiscal year, the Center will install modern and clean stoves (electric stoves, level 3 improved stoves) to reduce the consumption of traditional energy (wood, firewood, agricultural residues) and imported fuels (LPG, kerosene) used for cooking in the Terai with the financial support of GCF. and household biogas) aimed at promoting But Dhakal, executive director of the center, said that the program could not be implemented last year.

'GCF conditions had to be met. It took time to arrange all those things," said Dhakal. "We only completed the necessary ground work for the program, but the distribution work could not be done," he said. "Out of the 150 municipalities of Terai, an agreement has been reached with 75 municipalities. Other municipalities are in the process of being selected. He said that the work will start from this July. Dhakal said that the

center distributed 17,500 electric stoves last year in partnership with the municipality of the hilly region. Stoves were distributed in a partnership of 70 percent of the center and 30 percent of the municipality and sub-participants.

After the gas shortage during the earthquake of 072 and then India's undeclared blockade, the consumption of induction stoves started to increase. During the embargo, the Chinese government provided 10,000 induction stoves to Nepal, but the government-owned food supply and trading company sold them for 4,000 rupees each. Until a week ago, the company had sold Midea Company's induction stove for Rs 3750. But now the stock has run out, the company said.