Kathmandu, April 7: Nepal’s new government announced on Tuesday a reduction in taxes on petroleum products to ease the financial burden on consumers. This decision aligns with a recent move by the Indian government.
During a cabinet meeting on Tuesday, the government approved a 50% reduction in customs duties and infrastructure taxes on petrol, diesel, and kerosene, as confirmed by Minister for Federal Affairs and General Administration, Pratibha Rawal. She stated, “This decision will be published in the Nepal Gazette.”
Currently, the customs duty on petrol stands at NPR 25.23 per liter, while diesel incurs a tax of NPR 12.02 per liter. Additionally, both fuels are subject to an infrastructure tax of NPR 10 per liter. Beyond these two taxes, the government also levies various additional charges, including value-added tax (VAT), road maintenance tax, price stabilization fund charges, pollution tax, and green tax.
Ongoing tensions between the United States, Israel, and Iran have disrupted oil supplies through the Hormuz Strait, leading to rising oil prices in the international market. This situation has increased transportation and insurance costs, consequently raising the prices of goods reliant on transportation. Asian countries are particularly affected, given their heavy dependence on oil imports from the Gulf region.
Nepal does not directly import petroleum products from the Gulf or other regions; instead, it relies entirely on India for refined fuel. However, India itself faces challenges in fuel imports. At the end of March, the Indian government reduced excise duties on petrol and diesel by NPR 10 per liter, resulting in a decrease of NPR 3 per liter for petrol and zero for diesel.
In the last fiscal year, Nepal imported petroleum products worth NPR 288 billion.
My name is Himanshu Tiwari. I am an experienced content writer with several years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including TECHNOLOGY, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
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