Service Tax Row: Agitating Unions and HAN reach agreement to review the pact


15th Feb, 2017 | Tourism Mail Crew


KATHMANDU, Feb 15: The debate between the hotel/restaurant owners and the trade unions has settled down with an agreement to review the 20- point agreement signed in 2006.

The meeting between HAN officials and trade unions on Tuesday agreed to form a joint evaluation committee on the 20-point agreement, which was signed a decade ago.

“We will soon form a joint committee which will analyze the implementation side of the 20-point agreement, study necessary provisions in the agreement that needs to be reviewed and ways to establish enhanced relationship between hotel management and its employees,” Prabesh Aryal, executive director of HAN, said.

According to him, the committee will also study the feasibility of reviewing the current stake of hotel management and employees in the service tax, which is collected from the consumers.

Following the 20-point agreement, hotels have been implementing 10 per cent service charge on food and beverages, which is later distributed among the hotel management and workers in the ratio of 32:68.

According to Aryal, the joint-committee will also study consumers’ perspective on the 20-point agreement and its implementation.

The 20-point pact also includes code of ethics for hotel management and its workers.