The cabinet meeting held on Friday decided to provide Rs 1 billion in loan and Rs 800 million as VAT refund to help the state-owned fuel monopolist improve supplies in the market.[break]
“Of the Rs 700 million issued in the name of NOC by Inland Revenue Department, we released Rs 300 million on Tuesday. We will release remaining Rs 400 million on Wednesday,” Ananda Dhakal, Chief Tax Administration of Large Taxpayers Office told Republica.
NOC had claimed Rs 800 million in VAT refund from the government.
The government has already committed to provide Rs 1 billion as loan through Employees Provident Fund (EPF). The government had provided Rs 1.5 billion to NOC as VAT refund about six months ago.
EPF has so far provided loans worth Rs 7 billion to the cash-strapped NOC.
NOC had requested the government to arrange Rs 2 billion to clear oil import bills.
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