Demand to remove tax on air tickets

Kathmandu, March 27: Tourism entrepreneurs have demanded to remove the value-added tax (VAT) imposed on air tickets.     

During an interaction with entrepreneurs and stakeholders on the tax imposed on air tickets hosted by the Nepal Association of Tour and Travel Agents (NATTA) here Thursday, speakers suggested removing the VAT on air tickets.     

The entrepreneurs claim that the increase in ticket prices has affected foreign tourists coming to Nepal.     

Chairperson of the Nepal Airlines Operators Association Manoj Karki said that the VAT imposed on air tickets has also affected airlines and forced air passengers to buy tickets in expensive price. He said that it has directly affected not only aviation but also other tourism businesses.     

Senior Vice President of the Nepal Mountaineering Association Thakur Raj Pandey stressed the need to change the taxes imposed on tourism businesses, including the aviation sector, in the budget for the coming fiscal year.     

Former NATTA president Madhu Acharya suggested that the government remove the tax imposed on air tickets and find other alternatives, citing the example of neighboring India imposing a tax of five percent on domestic and 12 percent on business class tickets. The arrival of foreign tourists has decreased due to the high cost of air tickets.     

Restaurant and Bar Association of Nepal (REBAN) president Sangharsha Bista claimed that VAT has not created a business-friendly environment and has affected the overall business.     

It may be noted that the government had imposed VAT on air tickets through the budget statement for the current fiscal year 2080/81.(RSS)