UML’s Shankar Pokharel Slams VAT on Electricity Use Above 50 Units

CPN-UML General Secretary Shankar Pokharel has sharply criticized the government’s decision to impose Value Added Tax (VAT) on electricity consumption above 50 units, saying the policy works against the push for cleaner domestic energy use.

In comments shared on social media, Pokharel argued that the move discourages households from relying on electricity at a time when the state has repeatedly promoted a shift away from petroleum fuels. He questioned whose interests are served by the decision, especially as citizens continue to face rising living costs.

According to the reports, Pokharel framed the tax as more than a technical budget measure. He described it as a policy choice that could slow the wider adoption of electricity in daily life, particularly for cooking, heating, and other household needs where electric power has been positioned as a practical alternative to imported fuel.

The criticism also reflects a broader political debate over how Nepal should balance revenue collection with energy policy. Supporters of electrification have long argued that cheaper and more accessible electricity can reduce dependence on petroleum imports, strengthen domestic consumption, and support long-term energy security.

Pokharel’s remarks come at a time when households are already under pressure from inflation and higher utility-related expenses. His message suggests that a tax on moderate electricity use may be viewed by the public not just as an added cost, but as a signal that the government is backing away from its own energy transition goals.

The dispute highlights a recurring tension in policy making: raising revenue versus encouraging behavior that aligns with national development priorities. In this case, the controversy centers on whether taxing electricity consumption above a relatively low threshold undermines the government’s stated effort to promote domestic power use over imported petroleum.

As the debate grows, the VAT issue is likely to remain politically sensitive because it touches everyday household budgets, energy strategy, and the government’s credibility on reducing fossil-fuel dependence.