Preparations to provide public concessions by lowering tax on petroleum fuel by Rs 10

KATHMANDU: MAY. 27 – The government is preparing to make concessions by lowering petroleum fuel taxes. Following widespread criticism of the government due to continuous price increases, the government is preparing to make such a concession in the new budget, which will be presented on May 29.

According to an Oil Corporation source, the cabinet meeting approved in principle the Ministry of Commerce and Supplies’ proposal to reduce the customs tax on petroleum fuel to Rs 5 and the infrastructure tax to Rs 5 per liter.

Dilendra Prasad Badu, Minister for Industry, Commerce, and Supplies, said in the House of Representatives on Friday that the government was preparing to reduce the impact of price increases on the people by lowering taxes.

He also stated that a study was being conducted to determine how to address the impact of tax cuts on government revenue.

The government had begun negotiations to levy a Rs 5 per liter infrastructure tax on petrol, specifically for the construction of the Budhigandaki multi-purpose reservoir project with domestic investment. Later, when Dr. Yuvaraj Khatiwada was Finance Minister, he increased the rate and scope of the infrastructure tax on diesel.

Currently, an infrastructure tax of 10/10 per liter is levied on pertol and diesel. Similarly, petrol has a customs duty of Rs 25.23 paise and diesel has a duty of Rs 12.2 paise.