LPG dealers, depots demand VAT exemption

Liquefied Petroleum Gas (LPG) — popularly known as cooking gas — dealers and depots asked the government today to exempt Value Added Tax (VAT).
Submitting a memorandum to Inland Revenue Department today, we requested the government to exempt VAT in through the budget for the next fiscal year 2013-14, said president of Federation of LPG Dealers Gyaneshwor Aryal.

AS the government is planning to enforce VAT on LPG from the next fiscal year, it should start awareness campaign before enforcing VAT in cooking gas,” he added.
"India and other South Asian countries have not enforced VAT in LPG, so we must follow them," he said.
According to him, profit margin is too low in LPG, therefore the government can't generate much revenue from VAT.
About 10 LPG dealers and depots covering Kathmandu Valley and Kavre district have signed on the demand letter. "We have also urged the government to increase threshold of VAT to LPG dealers and depots," president of LPG Depots Association Chandra Krishna Shrestha said.
Similarly, the LPG dealers and depots have also demanded for a hike in their commission rate. "LPG dealers and depots have been getting Rs 30 per cylinder since the last three years. The government must hike our commission," Shrestha said.
The country has a monthly demand of around 16,000 metric tonnes of cooking gas. The government had planned to subsidise six cylinders for one family in a year.
About one million consumers have been using cooking gas in the country. According to Nepal Oil Corporation (NOC), nearly 30 per cent of consumers are commercial users.