The recent upheaval in the Kathmandu Valley's vegetable markets, specifically the shortage of potatoes and onions, demands urgent attention from the government authorities. While the decision to impose Value Added Tax (VAT) on imported vegetable items like potatoes and onions may not be inherently flawed, the chaos ensuing from its implementation necessitates a careful reevaluation of the strategy.
KATHMANDU, Dec 8: The Inland Revenue Department (IRD) has explicitly stated that there will be no value-added tax (VAT) on products such as potatoes, onions, and apples produced in Nepal. In the current fiscal year's budget, the government had imposed VAT on certain items that were previously exempt from VAT.
KATHMANDU, Aug 21: In addition to the 40 percent export tax, customs offices in Nepal levy 1.5 percent Agricultural Infrastructure Tax (AIT) and 9 percent Agricultural Reform Tax and Value Added Tax (VAT) of 13 percent. These additional taxes contribute to a total increase of around Rs 24 per kilogram for onions.
The Wednesday s Cabinet meeting also decided to appoint Madan Bhujel, Joint Secretary at the Industry Ministry, as chairman of the Kalimati Fruits and Vegetable Market Development Committee.