Parliamentary Committee has directed government to slash petroleum tax by 50%.
Industry & Commerce and Labour & Consumer Interest Commitee of HoR has directed Nepal Government, Ministry of Industry, Commerce and Supplies, Finance Ministry and Nepal Oil Corporation to reduce petroleum tax by 50%. At present, government is taxing petroleum products under 6 headings amassing Rs 65.61.
Goverment charges Rs 25.21 as Custom Declaration charge, Rs 22.89 VAT, Rs 10 as infrastructure tax, Rs 4 as Road Maintainence tax, Rs 1.50 as pollution tax and Rs 1.99 as price stability fund tax. After committee’s direction, government is allowed to tax only 32.80 which will reduce price of petrol to still Rs 166-179 per litre. Currently, one litre of petrol costs Rs 199 to general public.
Similary, price of diesel will be reduced by Rs. 24 while that of LPG will be reduced by Rs. 160. Lately petroleum products have seen a regular hikes taking it to all time high which has affected public livlihood to extreme level.