FinMin Mahat clarifies that government imposes VAT on potato and onion to protect and boost the domestic production in Nepal

Published 2023년 6월 28일

Tridge summary

The Nepali government has implemented a 13 percent value added tax (VAT) on onions and potatoes in order to boost domestic production and discourage imports. This move comes as part of the government's efforts to protect the agricultural sector. Finance Minister Prakash Sharan Mahat has warned consumers about potential artificial shortages and price hikes caused by black marketers following the implementation of the VAT.

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Original content

KATHMANDU, June 28: Finance Minister Prakash Sharan Mahat said the government imposed value added tax on onion and potato as a protectionism measure to boost the domestic yield of the agricultural products. Speaking at a meeting of the parliament on Wednesday, Mahat clarified that the government through the new step has targeted to discourage the import of the agro products. Through the announcement of the budget for 2023/24, the government has slapped a 13 percent VAT on top of the 1.5 percent income tax and nine percent agriculture service charge on these important kitchen essentials. Mahat said the black ...

Source: Nagariknetwork