‘It is wrong to impose the burden of inflation on people by imposing VAT on electricity’: Kulman Ghising

Kathmandu. Chairman of Ujyalo Nepal Party, Kulman Ghising, has said that the government’s policy of imposing VAT on electricity will push the country towards energy consumption and self-reliance.

Speaking at a signature program organized in Kathmandu on Tuesday to pile public pressure on the government to remove VAT on electricity and to recover the outstanding electricity tariffs of dedicated and trunk lines, Minister Khatiwada said that the government has increased the tax on electricity at a time when electricity consumption should have increased.

“Electricity consumption should be increased in the country. We had to replace gas, petrol and diesel. We all agree that electricity consumption should be increased rather than wasted. ’

Ghising also criticized the government for imposing tax on electricity, making electric vehicles costlier and imposing VAT on charging stations.

“Imposing taxes on electricity, making electric vehicles more expensive, and imposing VAT on charging stations discourage electricity consumption. It shouldn’t be done,” he said.

He said that the impact of VAT on electricity will pass on to the general consumers through the production cost of the industry. According to him, the price of rice, sticks, cement and oil will go up due to the rise in electricity prices.

“When electricity becomes expensive, the price of rice goes up, the price of rods goes up, cement goes up and the price of oil goes up,” he said. When the price of electricity increases, the cost of all industries increases and ultimately affects the common people. ’

Kulman Ghising blamed the government’s policy against the objective of increasing the use of electric stoves and electric vehicles.

“How do we promote electricity prices, VAT and electric stoves? To promote electric vehicles, customs should be subsidized and charging stations should be subsidized. On the contrary, how can the consumption of electricity increase by imposing VAT on everyone?” He said.

He said that a large amount of foreign exchange would come out of the country due to the increase in the use of gas and petroleum products instead of electricity.

Ghising stressed that the government should adopt a policy to reduce the import of petroleum products rather than collecting limited revenue by adding tax on the public.

“Petrol, diesel and gas worth Rs four trillion are imported. If it could be reduced by only two trillion rupees, the country would save two trillion rupees. It is wrong to think that the country can be developed only by collecting Rs 12 billion in taxes from the people. ’

Saying that the government should increase the consumption of electricity within the country and export it to foreign countries, Ghising underscored the need of the policy. He was of the view that the government should enable the private sector and banks to invest huge amount of money in productive sectors.

“Consume the country’s electricity, export the country’s electricity. We have to earn billions of rupees by selling electricity. Private sector investment should be increased, there are many areas for investment,” he said.

Ghising said that the government should move away from the policy of imposing additional tax on the people and focus on reducing the cost of electricity, irrigation, drinking water and industries.