Apex court issues interim order not to impose VAT on air tickets

KATHMANDU, July 30: The Supreme Court has issued an interim order not to implement the government’s decision to impose VAT (Value Added Tax) on the booking of air tickets. A single bench of Justice Anil Kumar Sinha issued a short-term interim order against the government's decision and has called the government side for a discussion over the matter.

The interim order was issued on Sunday following the writ petition filed by the Nepal Association of Tour and Travel Agents (NATTA). According to the association, the government's decision to impose VAT on air tickets is illegal and impractical, stating that it will put Nepal's tourism industry in further crisis.

President Ramesh Thapa of NATTA said that imposing VAT on air tickets will have a negative impact on the tourism businesses and will affect the country’s tourism industry heavily.