Nepal Oil Corporation (NOC) has said that it will be forced to raise the price of LPG (Liquefied Petroleum Gas) if the government does not revoke 13 percent Value Addition Tax (VAT) slapped on the product.

NOC also claimed that finance ministry has overlooked its request to negate the VAT being imposed on LPG.

“The Commerce Ministry has also formally urged the finance ministry to lift the existing VAT on LPG so that the consumer price of the same will not be increased. However, the finance ministry is completely mum on the issue," a high level NOC official was quoted as saying.

It is the exorbitant 13 percent VAT which has made per cylinder LPG dearer by Rs 130.

If the government annulled the VAT imposed on LPG, the NOC would have to bear the loss of only Rs 33 per cylinder.

According to the state-run monopoly, it is currently incurring a loss of Rs 163 in the sale of per cylinder gas.

The NOC is also of the opinion that withdrawal of the said VAT rate will facilitate it to reduce the loss of Rs 120 million monthly in LPG.

Similarly, the NOC could well accrue Rs 100 million as profit if the finance ministry subscribed to the proposition of canceling the existing VAT on LPG.     

Currently, per cylinder of LPG is priced at Rs 1,125.

The transaction of LPG per month stands at seven lakh and fifty thousand cylinders. nepalnews.com   

Write comment

Name: Email:   Title:   Please input the anti-spam code that you can read in the image.

View Comments	Search
As postings are shown online immediately, please be warned of offensive comments

3.26 Copyright (C) 2008 Compojoom.com / Copyright (C) 2007 Alain Georgette / Copyright (C) 2006 Frantisek Hliva. All rights reserved."