September 17, 2026, Thursday
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VAT on electricity will be applicable from July 1 only

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Kathmandu. The government has made it clear that the value added tax (VAT) imposed on electricity services will only be implemented from July 1. The Internal Revenue Department has said that even if the bill for electricity consumed in the month of June is issued in July, VAT will not be charged on it.

After the Nepal Electricity Authority included VAT in the electricity bill for the month of June, there were complaints from the consumers. After that, the department issued a notice on Monday clarifying the time when the tax will be implemented.

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