FinMin Mahat clarifies that govt imposed VAT on potato and onion to protect and boost the domestic production

Published On: June 28, 2023 08:14 PM NPT By: Republica  | @RepublicaNepal

KATHMANDU, June 28: Finance Minister Prakash Sharan Mahat said the government imposed value added tax on onion and potato as a protectionism measure to boost the domestic yield of the agricultural products.

Speaking at a meeting of the parliament on Wednesday, Mahat clarified that the government through the new step has targeted to discourage the import of the agro products. Through the announcement of the budget for 2023/24, the government has slapped a 13 percent VAT on top of the 1.5 percent income tax and nine percent agriculture service charge on these important kitchen essentials.

Mahat said the black marketers following the announcement of the budget attempted to create artificial shortage to hike the prices of these products. “Consumers should remain alert from such wrong practices going on in the market,” he added.


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