Kathmandu. The Ministry of Finance has said that there is no VAT exemption policy for petrol and diesel vehicles. Spokesperson of the Ministry, Uttar Khatri, said that provision for VAT exemption on petrol and diesel vehicles was mistakenly included in the Finance Bill.
In the Economic Bill 2081, the HS code of petrol and diesel vehicles is scheduled to be exempted from VAT. In the Finance Bill, the entire vehicle appears to be placed under Harmony Code 8703.21.99.
Earlier, VAT was exempted only for ambulances and subways, according to the provision made in the financial bill, VAT will not be charged on all petrol and diesel vehicles.
Khatri, the spokesperson of the ministry, said that there was a mistake in the financial bill as the HS code of the ambulance is also included in the same schedule. ‘It has been a mistake. We look at how the mistake was made and correct it,” he told BizMandu.
