Nepal’s largest Airlines Buddha pays Rs 592m in tax under different topics

2nd Sep, 2017 | Tourism Mail Crew

KATHMANDU, Sep 02: Buddha Air, Nepal’s largest and steamed aviation service provider paid a total of Rs 592.25 million in tax under different topics to government in the Fiscal Year 2016/17.

The largest domestic carrier posted the data on its official website recently.

The amount is about 51 percent more than what the airline had contributed to the government exchequer in FY 2015/16. The airline had paid taxes worth Rs 390 million to the government in the last fiscal year.

According to the data posted on Buddha Air website, the carrier paid Rs 300 million as direct tax in FY 2016/17. This shows that the airline posted net profit of about Rs 1.2 billion in the review year.

The company, which was declared largest taxpayer in the aviation sector in 2012 and 2014, paid Rs 292.2 million as indirect tax to government in FY 2016/17.

Indirect tax includes Tax Deducted at Source, VAT and other fees paid to the government.

The carrier, which enjoys more than 60 percent share in the domestic aviation market, had received““Highest Income Tax Payer in Aviation Tourism Sector" recognition from the government in 2012 and 2014. The airline flew 1.2 million passengers in 2016/17, according to the information posted on its website.

Birendra Basnet, managing director of Budhha Air, said the tax amount reflects the remarkable business growth that the airline witnessed in FY 2016/17 "Our business expanded significantly in the past fiscal year due to several reasons. It helped us to clear our loan”," he said, adding“"We also expanded our fleet last year which also helped us to mobilize more revenue."

Obstruction of vehicular movement on Narayanghat-Muglin road section in the past fiscal year proved beneficial airlines as many passengers chose to fly to Kathmandu rather than wait for several hours in long queues.“

"Our reasonable airfare also helped” Basnet said, adding that the aircraft was planning to add one more ATR 72-500 aircraft in the near future.

He also said that the Buddha Air will operate flight to Rajbiraj once the Rajbiraj Airport comes into operation.

Buddha Air is operating a fleet of nine aircraft. It is currently flying to 13 domestic destinations. The airline also operates seasonal flight to Varanasi of India.