Kathmandu, July 18 -- Households consuming more than 50 units of electricity a month will now pay a five percent Value Added Tax (VAT) on the electricity used above that threshold, while businesses and other non-domestic consumers will be charged 13 percent VAT on their entire electricity bill.

The Inland Revenue Department (IRD) has issued the Electricity Services Value Added Tax Collection Directive, 2026, paving the way for the new tax regime to take effect from July 17.

Under the directive, households using up to 50 units of electricity a month will continue to enjoy a VAT exemption. Once monthly consumption exceeds 50 units, however, a five percent VAT will be levied on the units consumed beyond the exempt threshold.

The concessio...