Ilam Municipality imposes 50 paisa tax on petroleum products

Published On: August 1, 2018 04:00 AM NPT By: Republica  | @RepublicaNepal

KATHMANDU, Aug1: At a time when there is criticism from various quarters over the increasing burden of tax on ordinary people, Ilam Municipality in eastern part of the country has decided to impose 50 paisa per liter tax on petroleum products in the name of controlling pollution.

The local government has decided to impose the pollution control tax even though the federal government has been imposing the same amount of tax in the name of controlling pollution.

“The decision to impose double tax on the same good is injustice against the people. There is an established practice of government not to raise the same tax by two tiers of the government,” said Balananda Poudel, former secretary and head of the Local Bodies Restructuring Commission formed by the government.

According to Paudel, this is against the spirit of the constitution which makes it mandatory to impose any such tax only in coordination among different tiers of the government. He also said that the municipality concerned needs to immediately revoke the decision as this is the case of imposing double tax under the same heading.

Ilam Municipality on July 29 had written to Nepal Oil Corporation (NOC) for necessary support to impose the tax on petrol and diesel. The letter written by Mayor Mahesh Basnet states that the Economic Management Act 2075 BS allows them to raise up to Re 1 per liter tax on petroleum products but a meeting held at the Secretariat of the Mayor on July 19 had decided to raise 50 paisa per liter on petrol and diesel to control pollution.

The decision taken by the municipality has drawn serious criticism from social media users.

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