Govt introduces ‘luxury tax’ for the first time; levies 5 percent tax on foreign travels

Published On: May 30, 2023 10:30 AM NPT By: Republica  | @RepublicaNepal

KATHMANDU, May 30: The government has introduced the 'Luxury Tax' for the first time. The government is going to collect an additional two percent luxury tax from those who stay and receive services in four and five star hotels.

Also after adding two percent tax, 13 percent VAT will be charged on it. As a result, the service of the hotel sector will become more expensive.

Luxury tax will also be levied on diamonds, pearls, gold and silver worth Rs one million. Luxury tax will also be levied on liquor imported from abroad.

Apart from this, those who travel abroad are also taxed. Now those who travel abroad have to pay five percent additional tax. Earlier, those who go to study abroad had to pay two percent tax, but now they have to pay three percent tax.

The government has also increased the taxes for manpower companies that send foreign jobs. When they send workers, they have to pay one percent tax to the government.

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