KATHMANDU, OCTOBER 6

The government’s decision to exempt value added tax (VAT) on the import of iron or steel sheet used in making penstock pipes to be used in hydropower projects has brought cheer to the entrepreneurs in the country.

The iron or steel sheets are used in making penstock pipes that are used for building tunnels in the hydropower projects.

The entrepreneurs who had invested in hydropower projects and those mulling to invest in the sector have been elated.

The Independent Power Producers Association, Nepal (IPPAN) President Krishna Acharya said that the energy entrepreneurs had also demanded with the government to consider exemption of VAT or any other charges on iron and steel sheets used in hydropower projects.

“Although the budget for the current fiscal year 2020- 21 did not incorporate these demands, we are happy that the government decided to exempt VAT on iron or steel sheets used in penstock pipes for hydropower projects,” he said.

Acharya added the government’s latest decision has provided relief to the energy entrepreneurs to some extent and expressed belief that this move will help in fulfilling the government’s target of producing 15,000 megawatts of power in 10 years.

Minister for Energy, Water Resources and Irrigation Barshaman Pun had announced during discussions on the Appropriation Bill in the Parliament on June 9 that the customs duty on the steel plates used in hydroelectricity projects would be revised.

The government has also reduced the tax on electric vehicles that it had increased lately. This move is expected to boost the appeal of electric vehicles in the country.

A meeting of the Council of Ministers on October 1 had decided to decrease the excise duty on electric vehicles. The automobile entrepreneurs had been complaining about the increment in excise duty announced through the budget statement of the current fiscal year.

Traders and entrepreneurs say that the price of electric vehicles had almost doubled with the increment in excise duty and around 500 electric vehicles are stuck at the customs points due to the increased tax.

Meanwhile, the government has prepared to operate nearly 300 electric buses in Kathmandu valley. Similarly, the Bagmati state government has brought the policy of promoting electric vehicles in the province.