Government Promotes VAT Bills With Cash Prizes, But Complaints Rise Over Bills At Army-Run Petrol Pumps

Kathmandu, Nepal — The government is encouraging consumers to demand VAT bills through a new prize-based tax compliance campaign. At the same time, complaints have surfaced over customers allegedly struggling to receive official VAT bills at petrol stations operated by the Nepal Army.

The contrasting situations have raised questions about whether the government’s push for greater tax compliance is being applied consistently across all institutions.

Under the government’s new taxpayer incentive programme, consumers purchasing goods worth more than Rs 100 and taking an official bill can become eligible for prizes, including daily rewards of up to Rs 100,000 and a bumper prize of up to Rs 1 million every 15 days.

Consumer Complaints About Army Petrol Stations

Complaints have recently appeared on social media regarding petrol stations operated by the Nepal Army.

One consumer claimed that he received a receipt without a VAT number after purchasing fuel at Ripumardini Petrol Station in Sitapaila and faced difficulty when asking for an official tax invoice.

Another social media user shared what appeared to be a handwritten receipt from an Army-operated petrol station in Bhadrakali, showing a petrol price of Rs 200 per litre but no PAN or VAT number.

These complaints have triggered questions about whether consumers should have to return later to obtain the required tax documentation.

Army Says The Issue Is Linked To Staff Timing

The Nepal Army has denied that it is deliberately avoiding VAT billing.

Army spokesperson and Brigadier General Rajaram Basnet said the main difficulty was the mismatch between petrol station operating hours and the working hours of the staff responsible for official VAT billing.

According to the Army:

• The petrol stations operate from 6 am to 10 pm.

• The official billing staff does not work throughout the entire operating period.

• Customers purchasing fuel early in the morning or after 6 pm may receive a temporary slip.

• They can return during office hours to collect the official VAT bill.

• The same system is reportedly being followed at other Army-operated petrol stations.

Basnet said there is no restriction on issuing VAT bills and that the Army has no intention of compromising transparency in fuel sales.

Consumer Rights Activist Questions The Practice

Consumer rights activist Bishnu Prasad Timilsina has criticised the reported practice, arguing that businesses selling goods should provide legally required billing documents.

He questioned whether government institutions should be treated differently from private businesses when it comes to tax and consumer protection rules.

Timilsina described failure to provide proper bills as a serious consumer rights issue and called for stronger monitoring by the relevant government agencies.

What Does The Tax Department Say?

The Inland Revenue Department has urged consumers to submit complaints with evidence rather than relying only on social media posts.

Department information officer Keshav Raghuwanshi said tax laws apply regardless of whether a petrol station is operated by the Army, Police or another institution.

He advised consumers to record the relevant PAN number and submit evidence to the appropriate Inland Revenue Office.

According to the department, complaints and evidence allow officials to conduct targeted inspections and take action where necessary.

Temporary Tax Bills Can Be Legal, But PAN Must Be Included

The Tax Department also clarified that not every transaction necessarily requires the same type of full VAT invoice.

For high-volume businesses such as petrol stations, the law allows certain transactions below Rs 10,000 to be documented through a simplified tax invoice, subject to applicable rules and approval.

However, the department said such simplified invoices must still contain the required PAN information.

A simple receipt without a PAN number would not meet the legal requirement, according to the department.

Why The Issue Matters

The controversy comes as the government is actively trying to increase tax compliance among consumers.

The government’s prize scheme is designed to encourage people to ask for official bills rather than completing purchases without documentation.

For the system to work effectively, however, consumers must be able to receive legally compliant bills from all businesses and institutions, including those operated by government bodies.

The issue therefore raises a broader question: if citizens are being encouraged to demand tax bills, should government-run businesses be held to the same standard?