FNCCI suggests to parliamentary committee to remove 13 percent VAT on air tickets

Published On: March 29, 2024 12:30 PM NPT By: Republica  | @RepublicaNepal


KATHMANDU, March 29: Raj Kishor Yadav, chairman of parliament's International Relations and Tourism Committee, has said that there is a need for collaboration among relevant agencies to promote tourism and the air transport sector.

In a discussion between the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) and the Committee at Singha Durbar on Thursday, Chairman Yadav said that the FNCCI has raised real issues for the development of tourism.

The FNCCI's Tourism and Air Transport Committee has also submitted 7-point suggestions to the International Relations and Tourism Committee for the development of tourism.

The FNCCI suggested that a task force be formed for the sustainable development of tourism, the cash limit that Indian tourists can bring when they come to Nepal be increased, the luxury tax imposed on star hotels be removed, the tax imposed on the purchase of air tickets be removed, and the royalty provisions in the Foreign Investment and Technology Transfer Act be amended.

Yadav expressed his commitment that the demands of the FNCCI are in the interest of the country and that this issue will be resolved immediately after discussing with the related agencies.

In the discussion, the president of FNCCI, Chandra Prasad Dhakal, said that the government should actively address the challenges in the tourism industry and find an effective solution.

He suggested that policies and regulations should be revised to promote development and innovation within this sector.

Chairman of the FNCCI's Tourism and Air Transport Committee, Desh Bandhu (Ajit) Basnet, said that the 13 percent VAT on air tickets and the luxury tax on hotels should be removed.


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