Govt should revise tax structure based on fuel consumption
KATHMANDU:
At a time when the fuel consumption has been surging, experts suggested to introduce new tax structure based on fuel consumption of a vehicle.
“The government should set lower tax rate for fuel-efficient vehicles compared to those that consume more fuel,” Nepal Automobile Dealers’ Association president Saurav Jyoti said, adding that it will encourage consumers to use fuel-efficient vehicles. Bangladesh and Sri Lanka have reduced tax on fuel-efficient hybrid vehicles, according to him.
Nepal Automobile Dealers’ Association has also suggested the government to lower tax on fuel-efficient vehicles, he said, asking the government to bring new tax structure in the budget.
“Fuel-efficient hybrid vehicles consume two to four times less fuel compared to normal vehicles, he said, adding that the country can save millions by encouraging such vehicles at a time when the total exports of the country is less than the fuel import bill. The country imported petroleum products worth Rs 59.53 billion in the first 10 months of the current fiscal year, whereas the total export stood at Rs 52.67 billion.
The domestic market consumed 631,951 kilo litre (kl) of petroleum products and 150,040 metric tonnes of cooking gas in the first eight months of current fiscal year compared to 558,114 kl petroleum products and 86,403 metric tonnes cooking gas in the same period last fiscal year, according to the Economic Survey.
However, the total length of roads has reached 21,455 km during the eight months of current fiscal year, major cities across the country has been facing traffic congestion due to insufficient road space compared to vehicles.
The government is currently charging tax — including VAT, excise and custom duty on a vehicle imported from abroad — based on the seat capacity.
In the recent years, fuel consumption has gone up due to increasing number of vehicles that is not good for the financial health of the country. “The government is currently charging tax up to 225 per cent,” Jyoti said, adding that it should be reduced to 100 per cent in the case of fuel-efficient vehicles.
Current tax structure
Vehicle types tax
Jeep, car and van 225.44 per cent
Micro bus (11-14 seat) 217.7 per cent
Double Cap pick up 135.04 per cent
Single cap pick up 120.35 per cent
Minibus (15-25 seats) 98.32 per cent
Motor cycle scooter 105.66 per cent
Bus above 25 seats including truck, tipper and tanker 54.25 per cent
Source: THT
At a time when the fuel consumption has been surging, experts suggested to introduce new tax structure based on fuel consumption of a vehicle.
“The government should set lower tax rate for fuel-efficient vehicles compared to those that consume more fuel,” Nepal Automobile Dealers’ Association president Saurav Jyoti said, adding that it will encourage consumers to use fuel-efficient vehicles. Bangladesh and Sri Lanka have reduced tax on fuel-efficient hybrid vehicles, according to him.
Nepal Automobile Dealers’ Association has also suggested the government to lower tax on fuel-efficient vehicles, he said, asking the government to bring new tax structure in the budget.
“Fuel-efficient hybrid vehicles consume two to four times less fuel compared to normal vehicles, he said, adding that the country can save millions by encouraging such vehicles at a time when the total exports of the country is less than the fuel import bill. The country imported petroleum products worth Rs 59.53 billion in the first 10 months of the current fiscal year, whereas the total export stood at Rs 52.67 billion.
The domestic market consumed 631,951 kilo litre (kl) of petroleum products and 150,040 metric tonnes of cooking gas in the first eight months of current fiscal year compared to 558,114 kl petroleum products and 86,403 metric tonnes cooking gas in the same period last fiscal year, according to the Economic Survey.
However, the total length of roads has reached 21,455 km during the eight months of current fiscal year, major cities across the country has been facing traffic congestion due to insufficient road space compared to vehicles.
The government is currently charging tax — including VAT, excise and custom duty on a vehicle imported from abroad — based on the seat capacity.
In the recent years, fuel consumption has gone up due to increasing number of vehicles that is not good for the financial health of the country. “The government is currently charging tax up to 225 per cent,” Jyoti said, adding that it should be reduced to 100 per cent in the case of fuel-efficient vehicles.
Current tax structure
Vehicle types tax
Jeep, car and van 225.44 per cent
Micro bus (11-14 seat) 217.7 per cent
Double Cap pick up 135.04 per cent
Single cap pick up 120.35 per cent
Minibus (15-25 seats) 98.32 per cent
Motor cycle scooter 105.66 per cent
Bus above 25 seats including truck, tipper and tanker 54.25 per cent
Source: THT
