KATHMANDU: Nepal Electricity Authority (NEA) has requested an opinion from the Inland Revenue Department regarding whether Value Added Tax (VAT) applies to electricity consumption from June 15 to July 16, as per the Financial Act, 2026.

Dirghayu Kumar Shrestha, Acting Executive Director of the Authority, sent a letter to the department asking for clarification on whether VAT would be attracted if the billing for electricity consumed between June 15 and July 16 is conducted from July 17, given that the Authority bills based on monthly electricity consumption meter readings.

Minister for Energy, Water Resources, and Irrigation, Biraj Bhakta Shrestha, had requested the Authority to clarify the confusion surrounding VAT.

Minister Shrestha instructed the Nepal Electricity Authority to clarify the legal and practical aspects of the issue and find a solution that avoids causing injustice to consumers.

Emphasizing that consumers should not be burdened with additional financial liabilities during the implementation of the tax, Minister Shrestha also directed that the existing confusions be resolved immediately.