KATHMANDU, JUNE 1
The Nepal Association of Tour and Travel Agents (NATTA) has expressed concerns over the government's decision to change tax rates and impose value added tax (VAT) on airfares as well as to impose a five per cent foreign tourism charge on sale of foreign tour package, as announced through the budget speech for the upcoming fiscal year 2023-24.
"While the government has announced that the decade between 2023 and 2032 would be observed as tourism decade, vowed to accelerate the construction of Nijgadh airport, restore cultural heritage sites, identify new tourist destinations and develop necessary infrastructure, upgrade airports, and create new opportunities for the tourism sector, among other positive programmes, which is welcomed by NATTA, other regulations brought without discussion and coordination with businessmen and related stakeholders will affect consumers, tourism professionals and have adverse effect on the entire tourism sector," a statement released by the association reads.
Stating that the government is already collecting taxes on airfares under various heading, NATTA has said that it is still unclear how and on what basis the government will impose five per cent tax on outbound tours and 13 per cent VAT on airfares.
NATTA has requested the government to continue the existing regulations and not to implement the VAT and tax-related regulations to continue supporting the tourism sector, which is gradually recovering to pre-pandemic levels.
A version of this article appears in the print on June 2, 2023, of The Himalayan Times.
