KATHMANDU: Ujyalo Nepal Party Chairman Kulman Ghising has urged the government to immediately withdraw the 13 percent value-added tax (VAT) imposed on electricity used for agricultural irrigation, community drinking-water systems and household purposes.
Ghising said the government should provide subsidies for essential services such as irrigation and drinking water rather than impose additional taxes on electricity.
He claimed that during his tenure as Nepal Electricity Authority chief, the electricity tariff for agricultural irrigation was reduced from around Rs7 per unit to about Rs2 by waiving demand charges. Similarly, the tariff for lifting water through community drinking-water systems was reduced from Rs9 to around Rs4.20 per unit after the demand charge was waived, he said.
Ghising also argued that electricity used for agricultural irrigation could be provided free of charge. With farmers already facing rising costs for fertiliser, seeds, labour and agricultural machinery, he said adding VAT to electricity would place further pressure on the agricultural sector.
“Farming is difficult without lift irrigation, and access to drinking water in villages is difficult without lifting water,” Ghising said.
Amid the ongoing shortage of cooking gas, Ghising also called for electricity subsidies to encourage the use of induction cookers. Instead of plans to distribute LPG cylinders, he suggested that the government launch a programme to provide induction cookers to households.
He described it as ironic that Nepal is wasting domestically generated electricity while people are forced to queue for cooking gas.
Ghising claimed Nepal’s electricity infrastructure is now capable of handling widespread use of induction cookers and charging electric vehicles. Although some technical challenges may arise, he said the Nepal Electricity Authority has developed the capacity to address them promptly.
“My kitchen and vehicle run entirely on electricity. Now, let’s make every household run on electricity,” he said.
Ghising said increasing domestic electricity consumption would help Nepal move towards a more self-reliant economy and contribute to strengthening the country’s foreign-exchange reserves.
He reiterated his call for the government to immediately withdraw VAT on electricity.
