Is Nepal Oil Corporation 5% contributor of Nepal's total budget?
While reading Kantipur today (20 Dec, 2007), I find a notice published by Nepal Oil Corporation (NOC) stating the loss they are facing each month. I just wonder how could a company or organization go on loss while generating tax to contribute almost 5% of the total national budget? Surprised?. Let me clarify in details.
There is a national tax for each litre of petro-products as stated in the NOC notice. If we look the table below, the amount of money that goes to government is Rs. 85,64,10,000 per month. Here LPG rate per cylinder has been converted into Litre (1 Cylinder =14.1 Kg). Government also receives 15% as tax from the total salary drawn by the employee at NOC, which amounts Rs. 8,55,36,000 per year. Hence the total money as the direct tax to government from NOC amounts to be Rs. 10,36,24,56,000 per year.
If this is the case, out of 2oo billion as national budget of Nepal, government receives 10 billion as tax, i.e., 5% from NOC only?
In spite of this contribution?, NOC is always bankrupt, why?. It is always asking money from government to balance its loss and has published this notice for public. If you look closely, the notice calculates salary for every litre of all petro-chemicals though that might be not the case and overestimating the real cost. Besides this office costs are cent percent to the salary cost. If we calculate the total salary investment, NOC must be having 1418 staffs drawing the salary equivalent to Nepal's prime minister (Nepal's prime minister salary is Rs 33,500/month). I don't know what is wrong with this organization but something must be wrong.
There is a national tax for each litre of petro-products as stated in the NOC notice. If we look the table below, the amount of money that goes to government is Rs. 85,64,10,000 per month. Here LPG rate per cylinder has been converted into Litre (1 Cylinder =14.1 Kg). Government also receives 15% as tax from the total salary drawn by the employee at NOC, which amounts Rs. 8,55,36,000 per year. Hence the total money as the direct tax to government from NOC amounts to be Rs. 10,36,24,56,000 per year.If this is the case, out of 2oo billion as national budget of Nepal, government receives 10 billion as tax, i.e., 5% from NOC only?
In spite of this contribution?, NOC is always bankrupt, why?. It is always asking money from government to balance its loss and has published this notice for public. If you look closely, the notice calculates salary for every litre of all petro-chemicals though that might be not the case and overestimating the real cost. Besides this office costs are cent percent to the salary cost. If we calculate the total salary investment, NOC must be having 1418 staffs drawing the salary equivalent to Nepal's prime minister (Nepal's prime minister salary is Rs 33,500/month). I don't know what is wrong with this organization but something must be wrong.
| Item | Salary/L | Tax/L | Total L | Tot salary Rs | Total Tax Rs |
| Petrol | 0.22 | 26.11 | 12000000 | 2640000 | 313320000 |
| Diesel | 0.22 | 11.18 | 30000000 | 6600000 | 335400000 |
| Kerosene | 0.22 | 2.17 | 18000000 | 3960000 | 39060000 |
| LPG | 3.12 | 15.33 | 11000000 | 34320000 | 168630000 |
| Total/month | 47520000 | 856410000 | |||
| Total/year | 570240000 | 10276920000 | |||
| 85536000 | 10362456000 | ||||
| 15% salary |
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