Tourism entrepreneurs said government-imposed VAT cannot be applied immediately

KATHMANDU, June 09:Tourism entrepreneurs have stated that the government's VAT cannot be adopted quickly. Despite the fact that taxation in the tourism sector was declared in the budget for fiscal year 2080/81, it was stated at a press conference jointly held by the Tourism Relations Organization that it is not possible to pay VAT immediately.

There is a situation in which VAT must be applied, and an expert group comprised of tourist specialists has created and requested that it be implemented after a one-year study.

According to them, with this decision, it will be impossible to bring in 1 million tourists as planned by the government. Similarly, they indicated that replacing vehicles that are 20 years old within 35 days is problematic.

According to tourism and aviation entrepreneurs on the program, the value added tax imposed on air travel, the 2% luxury tax placed on five-star hotels, and the 5% tourist tax imposed on foreign tourists will raise the cost of visiting Nepal.

Trekking Agencies Association of Nepal (TAAN), Nepal Association of Tour and Travel Agents (NATTA), Hotel Association Nepal (HAN), Nepal Mountaineering Association (NMA), Nepal Association of Rafting Agencies (NARA), Himalayan Rescue Association (HRA), Nepal Mountain Instructors Association (NMIA), Airlines Operators Association Nepal (AOAN), Society of Travel and Tour Operators Nepal (SOTTO Nepal), Himalayan Rescue Association (HRA), Himalayan Rescue Association (HRA), Village Tourism Promotion Forum Nepal (VITOF-NEPAL), the Nepal Tourist Vehicle Association (NTVA), the Tourist Bus Association of Nepal (TBAN), the Nepal Association of Tour Operators (NATO), the Thamel Tourism Development Council (TTDC), and the Association of Kailash Tour Operators Nepal (AKTON) have all made requests to the government.