Saturday, May 30, 2026 01:30 PM

Kulman slams new electricity tax as anti-consumer

KATHMANDU: Kulman Ghising, chairman of Ujyalo Party Nepal, has accused the government of discouraging electricity use through the new budget instead of introducing policies that promote greater electricity consumption.

In a social media post, Ghising criticized the government’s decision to impose a 5 percent Value Added Tax (VAT) on consumers who use more than 50 units of electricity per month under the budget for the fiscal year 2083/84.

“This decision goes against the interests of ordinary consumers, the country’s energy transition goals, and the national campaign to increase the use of domestically produced clean energy,” he wrote.

Ghising argued that most consumers who use more than 50 units of electricity per month are ordinary households. Imposing an additional tax on them, he said, would increase monthly expenses for millions of families and make household living costs even higher.

According to him, the government should be introducing incentives to encourage greater consumption of electricity produced within the country. Instead, it has adopted a policy that could discourage electricity use. He warned that the measure may reduce the use of electric stoves and other electrical appliances, pushing consumers back toward greater reliance on LPG gas.

He said such a move is inconsistent with Nepal’s goals of strengthening energy security, reducing the trade deficit, and promoting a green economy.

Stressing the need to increase domestic electricity consumption, Ghising said electricity tariffs should be made more equitable, progressive, and consumer-friendly.

He also called on the government to immediately withdraw the additional 5 percent tax imposed on electricity consumers, arguing that it undermines efforts to promote the use of domestic electricity, expand clean energy adoption, and protect consumer interests.

People’s News Monitoring Service

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