Government announces partial tax exemption on petroleum products

Kathmandu: The government has decided to provide partial tax exemptions on petroleum products. During a cabinet meeting on Tuesday, it was decided to exempt 50 percent of the taxes imposed on petroleum products under infrastructure and customs duties.

Currently, petrol is subject to a customs duty of Rs 25.23 per litre and an infrastructure tax of Rs 12.2 per litre, while both petrol and diesel incur an additional Rs 10 per litre tax, according to NCC spokesperson Manoj Thakur.

With the new exemption, petrol will receive a tax relief of Rs 17.50 per litre and diesel Rs 11 per litre. Previously, petrol was taxed at Rs 66.98 per litre, and diesel at Rs 49.28 per litre, including value-added tax, road maintenance tax, price stabilization fund fees, pollution tax, and green tax.

In addition, the state currently levies Rs 324.95 per cylinder of LP gas for domestic use and Rs 34.48 per litre on aviation fuel.