SANGAM PRASAIN
KATHMANDU, DEC 17 -
Lawmakers on Thursday said the government’s subsidy policy on LP gas was not in favour of consumers and is only benefiting industries.
The government refunds the Value Added Tax (VAT) levied on LP gas purchased for industrial purpose only. Lawmakers said that the consumers, who use a maximum of two-three cylinders per month, should not be compelled to
bear the burden for the facility given to industries.
The government collects Rs 207 per cylinder as tax, of which Rs 149 is collected as VAT. The government had included LP gas in the list of daily essential items.
“VAT levied on LP gas purchased for industrial purpose is refundable, but the government’s opposite tax policy is burdening poor consumers,” said CPN-UML lawmaker Rabindra Adhikari, while discussing the price hike on petroleum products at the Parliament’s Public Account Committee (PAC).
The PAC had summoned Minister for Commerce and Supplies Rajendra and officials from Nepal Oil Corporation (NOC) to justify the recent gasoline price hike.
Minister Mahato also admitted that the government subsidy policy was opposite. “The government should introduce subsidy on LP gas for the consumers as in India,” said Mahato.
He added that the ministry is holding discussions with the finance ministry on the issue. The waiver in VAT will drop the gas price by at least Rs 40 per cylinder, he said. Of the total imported gas, 30 percent is consumed by industries. The country consumes one million gas cylinders every month.
Amid pressure from the
political parties, student
unions and consumer rights activists to revise the petroleum
products price hike, Mahato said the price revision is possible only if the government excuses the tax levied under the head of road maintenance and upgrading or scrap the VAT.
Petroleum products are the government’s largest revenue generating commodities. Last fiscal year, NOC paid Rs 12.41 billion revenue. The country consumes gasoline worth Rs 60 billion every year.
During the meeting, lawmakers said corruption, commissions and irregularities were the reasons behind NOC’s ballooning losses every year. “Rampant irregularities in NOC have compelled consumers to suffer from price hike,” said Adhikari.
Dhan Raj Gurung, lawmaker of Nepali Congress, stressed on the need for forming a separate independent board that would make the fuel prices more transparent and discuss all the alternative measures for price revision and adjustment. “Although, the state-owned oil monopoly is being cash-strapped every passing years, its officials are found to be well-off,” said Keshav Nepal, the UCPN-Maoist lawmaker.
Nepal added that an immediate measure should be introduced to make the corporation more transparent and punish the officials involved in corruption and commissions.
Purushottam Ojha, secretary at the ministry of supplies and the chairman of the NOC, said the government should end the monopoly of NOC in fuel distribution and involve the private sector in this business.
Ojha added that NOC is in the process of developing oil pipeline that will end the rampant fuel adulteration and high transportation cost. Although the oil pipeline project was initiated long time ago, change in its modality has frequently delayed the construction.
“NOC delegations to finalise the oil pipeline modality are departing to India in January,” Ojha said.
What makes petroleum products high in Nepal
Petrol Diesel Kerosene LP gas
Price Rs 52.13 Rs 54.48 Rs 52.49 Rs1077.39
Tax Rs 29.87 Rs 12.42 Rs 2.04 Rs 207
Interest Rs 0.63 Rs 0.52 Rs 0.43 Rs 9.25
Transportation Rs 1.80 Rs 1.80 Rs 1.80 Rs 7.10
Technical loss Rs 1.25 Rs 0.93 Rs 0.85 ------
Dealers commis Rs 3.23 Rs 2.39 Rs 2.75 Rs 213.07
No comments:
Post a Comment