NOC Makes VAT Bill Mandatory for LPG Purchases

Kathmandu: Nepal Oil Corporation (NOC) has made VAT invoices mandatory for all liquefied petroleum gas (LPG) transactions, in a bid to bring greater transparency to the LPG market and curb irregularities amid prolonged supply shortages.

NOC Spokesperson Manoj Thakur said consumers must now obtain an official VAT bill when purchasing LPG. In a video message, Thakur said the lack of a billing practice among consumers has contributed to various irregularities in the LPG market.

According to the NOC, the VAT bill will also serve as an important document to protect consumers’ legal rights and ensure the safety and legitimacy of LPG transactions. Consumers will be required to produce the VAT bill to seek compensation or make insurance claims in cases involving underweight cylinders, cylinder defects or leakage, or property damage caused by an LPG-related accident or explosion.

The corporation expects the mandatory billing system to help control black marketing and other unauthorized practices that have persisted in the LPG market.

Meanwhile, the Gas Dealers Federation Nepal (GDFN), the umbrella organization of private-sector LPG dealers, has welcomed the NOC’s decision and expressed its commitment to implementing the new provision.

In a statement issued on Monday, GDFN President Gyaneshwor Aryal said the federation had also been calling for a mandatory billing system to make LPG transactions more transparent, systematic and secure.