KATHMANDU: The Association of Nepalese Rice, Oil and Pulses Industries (ANROPI) today issued a statement mentioning that increased Value Added Tax (VAT) by the government in the fiscal year 2060 resulted in the shutdown of mustard oil industries in the country. This in turn resulted in the import of low quality and adulterated mustard oil from across the border.

“The 13 per cent VAT on mustard oil has greatly affected Nepali oil industries,” said ANROPI president Dugad adding that due to the inability to compete with Indian oils, most of the Nepali oil industries have been closing down rapidly. He said frequent requests to the governmenet to annul the increased VAT had gone in vain and that the 50 per cent discount provided last year 2065 had also been removed. This had forced oil manufacturers to store oils in the mill itself.

“We cannot compete with the

lower priced Indian oil. Therefore, there has been tremendous cut back in the oil manifacture itself,” said Dugad. Despite the festive season there has not been adequate demand for Nepali mustard oil.

There is a difference of Rs 30 in

the price of Nepali and Indian oil. “This has resulted in the smuggling

in of Indian oil these days,” complained Dugad.The association

has requested the government to

reduce the VAT as soon as possible, keeping in mind the problems of farmers and local manufacturers.