HAN hints in halt of collecting Service Charge from Customers

23rd Jan, 2017 | Tourism Mail Crew


KATHMANDU Jan 23 : With the trade union’s demand claim over the 10% service charge charged by hotels and restaurants the umbrella association of Hotels in Nepal (HAN) has hinted towards halt in collecting such charges.


Though there is no statutory provision over the payment of Service Charge an agreement was made between Hotel Association Nepal and 5 trade unions on December 30, 2006 to raise 10% service charge from customers. At that time they had agreed to share the amount in the ratio of 68: 32 but with the full claim of trade unions over it the HAN is in an intention to halt the collection of money.

During the decade long Maoist Insurgency some renowned hotels like Sherpa, Narayani, Bluestar and others were forcefully brought out of operation. In order to stop the hotels from being closed and to make the hotel business stable the provision of 10% service tax was brought in Nepal.

“After a decade of the agreement and the full claim by the unions over the service charge HAN has called for a meeting on Friday to discuss with the union,” one of the officers from HAN said.

HAN who is in an intention to cancel the collection of service charge claimed that the provision widely implemented has made the bills of restaurant and the hotels costlier than of before.

“In the name of service charge of Nepali Hotel/ restaurant is hiked by 10% in which another 13% VAT is added, this has placed extra 24.3% pay load to the customers. With the bills going high it has decreased the number of customers and hence also failing to satisfy the customers with the service which they expect,” the statement released by HAN states.

In addition, the HAN also has claimed that it already have informed the Governmental bodies and threatened to stop collecting service charge from the customers if the trade union went forward with their protest schedule.