Finally, on 31st July 2023, the Supreme Court of Nepal issued an interim order not to impose a value-added tax (VAT) on domestic airfare. The court took action in connection with a writ petition written by the Nepal Association of Tours and Travels Agent (NATTA).
SC issued an interim order not to impose a VAT on domestic airfare
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Anil Kumar Singh, a single bench of Justice issued an order and also asked for the Nepal government side for further discussion.
On 17th July 2023, NATTA submitted the Judicial Writ to the Supreme Court with certiorari against the decision of the Nepal government about imposing a VAT on air costs.
Prakash Sharan Mahat, the Finance Minister of Nepal had announced the implementation of VAT on Air Fare in the fiscal year 2023/2023 while presenting the budget of the country.
The Tourism Entrepreneurs of Nepal were concerned very seriously about the increment of Air tickets as this issue is going to impact negatively on the business of tourism. According to the NATTA, the travel companies and the passengers would need to face the burden of the VAT.
