May 30, Kathmandu - To promote clean energy, Nepal government has announced a VAT exemption on the import of machinery, equipment, and tools necessary for green hydrogen production. The provision was included in the 'Economic Bill, 2083,' presented by Finance Minister Dr. Swarnim Wagle in Parliament on Friday.

According to the bill, the VAT exemption will apply to imports recommended by the Ministry of Energy, Water Resources, and Irrigation for green hydrogen production equipment.

Finance Minister Dr. Wagle also revealed plans to kickstart commercial green hydrogen production by establishing a 2.5 MW green hydrogen plant in Hetauda as a pilot project. He assured that the necessary budget allocations would be made to advance green hydrogen initiatives in the upcoming fiscal year.