Nepali Congress Calls for Tax Relief on Fuel Prices

Nepali Congress has urged the government to take immediate steps to reduce taxes on petroleum products in order to control rising fuel prices and ease the financial burden on citizens.

The demand was made following a meeting of the party’s Central Working Committee, chaired by senior leader Gagan Kumar Thapa. The party emphasized that rising global fuel prices, especially due to ongoing tensions in the Middle East, have directly impacted consumers in Nepal.

Rising Fuel Costs Impact Daily Life

According to the party statement, increasing fuel prices have affected multiple sectors, including household expenses, transportation, agriculture, tourism, and employment. The rising cost of petroleum products has also contributed to overall inflation in the country.

The party spokesperson Devraj Ghimire stated that the economic pressure on citizens has become significant and requires urgent government intervention.

Call for VAT Relief and Tax Reduction

The Nepali Congress has proposed providing relief by adjusting or refunding Value Added Tax (VAT) that increases automatically with fuel prices. The party also suggested removing what it called unnecessary charges such as infrastructure development tax.

In addition, it has recommended reviewing or temporarily removing various other fees, including customs duty, road maintenance charges, pollution control fees, and green taxes to reduce overall fuel costs.

Concerns Over Pricing Structure

The party highlighted that the current tax system has created a situation where Nepal Oil Corporation is forced to purchase fuel at high international prices while selling it at lower domestic rates, leading to financial pressure.

It argues that without reform in the tax structure, both the corporation and consumers will continue to face losses and rising costs.

Relief for Students and Public Transport Users

The party has also called on the government to introduce special relief measures, particularly for students, who are being heavily affected by increasing transportation costs.

With fuel prices continuing to rise, the Nepali Congress has urged the government to rethink its tax policy and provide immediate relief to citizens. The party believes that reducing tax burdens on petroleum products is essential to controlling inflation and stabilizing the economy.