Agricultural traders in Nepal: VAT on potatoes and onions is impractical and unnecessary

Published 2023년 6월 13일

Tridge summary

The Nepal Agricultural Produce and Potato, Onion Import Export and Wholesalers Association has opposed the application of Value Added Tax (VAT) on potatoes and onions under the Economic Act, 2080 BS. The Association argues that imposing VAT on essential food items will harm businesses and consumers by increasing the financial burden on the public at a time of rising prices. Currently, potatoes and onions are already subject to a 14% tax, a 9% agricultural service fee, and a 5% advance income tax. The proposed 13% VAT increase would further escalate the cost of these staple foods, leading to a significant rise in the overall cost of cooking.

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Original content

KATHMANDU, June 13: Nepal Agricultural Produce and Potato, Onion Import Export and Wholesalers Association has stated that it is impractical to attract VAT on potatoes and onions under the Economic Act, 2080 BS. In a press conference held in Kathmandu on Monday, the Association said that it is not appropriate to impose VAT on the business of potatoes and onions, which are essential items used in the kitchen every day. Speaking at the press conference, Prakash Gajurel, Secretary General of Association, said that one point of the budget statement for the next fiscal year 2023/24 presented by the government on May 29 and the accompanying Economic Act, 2080 BS will have an adverse effect on businesses and consumers as well. He claimed that imposing VAT on essential agricultural products such as potatoes and onions at a time when prices are rising in the country has made it even more difficult for the common man to make a living. He clarified that in this case, even though the VAT has ...

Source: Nagariknetwork