Adding VAT to air tickets cannot achieve its goal of bringing tourists: NATTA

KATHMANDU, June 04:The Nepal Association of Tour and Travel Agents (NATTA) has stated that implementing a value-added tax (VAT) on airfare will not meet the government's objective of attracting 1.6 million tourists in the next fiscal year.

After the announcement of the budget for fiscal year 081/82, NATTA President Ramesh Thapa noted on Wednesday that the government has been repeatedly asked to abolish the VAT charged on airfare by entrepreneurs, but its inability to do so has caused problems for tourism entrepreneurs and air passengers.

"After the decision to impose VAT on air tickets through last year's budget statement, tourism professionals and air travelers are in trouble, due to which the number of tourists visiting Nepal has not increased significantly," stated the statement.

President Thapa stated that increasing VAT will not meet the government's aim of attracting tourists in the following year because the Bhairahwa and Pokhara International Airports, which were completed as part of the air sector development, are not operational.