Kathmandu, July 31
The Supreme Court issued an interim order on Sunday, asking the government to not implement value-added tax (VAT) on air tickets.
The court issued such an order in response to a writ petition filed by the Nepal Association of Tours and Travels Agent (NATTA).
A single bench of Justice Anil Kumar Singha issued the order and also summoned the government side for discussion.
NATTA had moved the SC on July 17, seeking mandamus with certiorari against the government’s decision to impose VAT on air tickets.
In the budget presentation for the fiscal year 2023/24, Finance Minister Prakash Sharan Mahat announced the implementation of VAT on air tickets.
Tourism entrepreneurs are concerned about the negative impact of the newly imposed VAT on air tickets, as it could adversely affect the tourism business. The burden of this tax is expected to be borne by both travel companies and passengers, as stated by NATTA.
