Hotels, restaurants prohibited from charging extra VAT and service charges

KATHMANDU, Oct 23: Hotels, restaurants and bars  will not be able to add VAT to the consumer price.

The Department of Commerce, Supply and Consumer Protection has asked to stop the hotel restaurant which is registered for VAT as it collects VAT apart from the menu.

The department issued a press release and said that it has drawn attention to the complaints of consumers.

The department has said, "The attention has been drawn to the fact that hotel restaurants mention a price on the menu in the price of goods or services and force consumers to pay by adding VAT when issuing receipts after consumption of such goods or services."

The department has asked to keep the price inclusive of tax in the menu.

According to the statement issued by the department, all hotel, restaurant and bar businessmen have been instructed to mention the final consumer price including all kinds of service charges and taxes to be paid by the consumer and not to charge prices other than those mentioned.