Entrepreneurs welcome VAT exemption on penstock pipes

entrepreneurs-welcome-vat-exemption-on-penstock-pipes

, OCTOBER 6

The government’s decision to exempt value added tax (VAT) on the import of iron or steel sheet used in making to be used in has brought cheer to the in the country.

The iron or steel sheets are used in making penstock pipes that are used for building tunnels in the hydropower projects.

The entrepreneurs who had invested in hydropower projects and those mulling to invest in the sector have been elated.

The Independent Power Producers Association, () President Krishna Acharya said that the energy entrepreneurs had also demanded with the government to consider exemption of VAT or any other charges on iron and steel sheets used in hydropower projects.

“Although the budget for the current fiscal year 2020- 21 did not incorporate these demands, we are happy that the government decided to exempt VAT on iron or steel sheets used in penstock pipes for hydropower projects,” he said.

Acharya added the government’s latest decision has provided relief to the energy entrepreneurs to some extent and expressed belief that this move will help in fulfilling the government’s target of producing 15,000 megawatts of power in 10 years.

Minister for Energy, Water Resources and Irrigation Barshaman Pun had announced during discussions on the Appropriation Bill in the Parliament on


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