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Lawmakers demand removal of VAT on air tickets

Nepali Congress (NC) lawmaker Udaya Shamsher JB Rana stated that the high cost of flying to Nepal, despite the relatively low expenses within the country, negatively impacts tourism.
By REPUBLICA

KATHMANDU, March 24: Lawmakers have urged the government to remove the value-added tax (VAT) imposed on air tickets. During a meeting of the International Relations and Tourism Committee held at Singha Durbar on Monday, they expressed concerns that high airfare forces Nepali travelers to use foreign airlines when flying to Nepal.


Nepali Congress (NC) lawmaker Udaya Shamsher JB Rana stated that the high cost of flying to Nepal, despite the relatively low expenses within the country, negatively impacts tourism.


“If airfare to Nepal were cheaper, tourists could spend more after their arrival. But the situation is reversed—flying here is expensive, while expenses within the country are low. In countries like Thailand and the US, airfare is cheap but the cost of living is high, whereas Nepal has the opposite problem,” he said.


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Nepal Workers Peasants Party lawmaker Prem Suwal alleged that customs operations at airports are controlled by a limited number of agents and called for better management.


“Despite having over 700 competitive contractors nationwide, only 8 to 10 dominate the construction and management contracts at airports. Some even manage the contracts remotely from abroad. Is this a practice of collusion with the ministry, or is the government simply unaware?” he said, calling for stricter regulation of customs agents.


Likewise, Rastriya Swatantra Party (RSP) lawmaker Shishir Khanal voiced concerns over the Ministry of Culture, Tourism, and Civil Aviation’s low capital expenditure, noting that only 15 percent of the allocated budget had been spent with just four months left in the fiscal year. 


“With only four months left in the fiscal year, the ministry has utilized just 15 percent of its budget—this is alarming,” he said.


Similarly, NC lawmaker Bimalendra Nidhi emphasized the need to upgrade Janakpur Airport. “Despite federal recognition of regional airports in all provinces, Janakpur Airport has not seen the expected level of development,” he said.


The committee meeting also discussed the ministry’s progress, plans, and strategies for the upcoming fiscal year.


 

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