VAT charges to tourists cancelled

9th Jul, 2018 | Tourism Mail Crew

KATHMANDU, July 09: The Ministry of Finance has taken back its decision to take both VAT and TAX charges from the tourists after protest from citizens.

Tourism entrepreneurs said that, they had protested against the VAT system because it could affect the number of tourists visiting Nepal. According to the Director General of the Tourism Department, Dandu Raj Ghimire, the VAT system will not be implemented for now due to the disagreement of tourism entrepreneurs but Ministry of Finance has decided to take VAT charges from new fiscal year.

Tourism entrepreneurs were excited to welcome 2 million tourists in year 2020 but the decision of additional VAT charges from the ministry has disappointed them. General Secretary of Trekking Agencies Association of Nepal (TAAN) said that this is not a suitable time to take VAT charges, as the number of tourists in Nepal is less in number the decision of charging 13% VAT will again decrease the number of tourists. He urged the government to construct the infrastructures rather than increasing the VAT.

There are no VAT charges in countries that are better developed than Nepal like Thailand, Singapore, Sri Lanka. The tourists visit Nepal for viewing the mountains specially and increase in VAT charges will lead to the decrease in the number of tourists.