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MarketJuly 25, 2026

Energy Minister Directs Halt to Retroactive VAT on Ashar Electricity Bills

Energy Minister Directs Halt to Retroactive VAT on Ashar Electricity Bills

Consumers are facing an unexpected financial burden due to the imposition of Value Added Tax (VAT) on electricity consumed in Ashar. This move appears to contradict the Economic Act, 2083, which stipulates that VAT on electricity should only be effective from Shrawan 1st. Energy, Water Resources, and Irrigation Minister Biraj Bhakta Shrestha has expressed serious concern regarding public complaints on this issue. The Minister has directed a halt to the immediate collection of this contested VAT for Ashar's consumption and has sought urgent clarification from the Revenue Department. This intervention aims to ensure transparency and consistency in tax policy, directly impacting household budgets and potentially influencing broader economic sentiment.

  • Energy Minister intervenes to halt VAT on Ashar’s electricity bills, seeking clarification on tax implementation.

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Consumers are facing an unexpected financial burden due to the imposition of Value Added Tax (VAT) on electricity consumed in Ashar. This move appears to contradict the Economic Act, 2083, which stipulates that VAT on electricity should only be effective from Shrawan 1st. Energy, Water Resources, and Irrigation Minister Biraj Bhakta Shrestha has expressed serious concern regarding public complaints on this issue. The Minister has directed a halt to the immediate collection of this contested VAT for Ashar's consumption and has sought urgent clarification from the Revenue Department. This intervention aims to ensure transparency and consistency in tax policy, directly impacting household budgets and potentially influencing broader economic sentiment.
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