KATHMANDU, July 28: The Nepal Association of Tour and Travel Agents (NATTA), the umbrella organization of Nepal's tourism industry, has filed a petition at the Supreme Court against the government’s decision to levy Value Added Tax (VAT) on air services, demanding the withdrawal of the decision.
NATTA filed the petition at the apex court on Thursday, demanding the withdrawal of the decision announced through the budget for the fiscal year 2023/24. The Association said the imposition of VAT will make air services more expensive. President of NATTA, Ramesh Thapa, said that the VAT levied on the air sector makes the air service more expensive, so he was forced to knock on the court doorsas there was no response even after repeated requests to reconsider the government’s decision.
"We have filed a writ petition according to the advice of former presidents and members of NATTA, lawyers, tax consultants and the decision of the NATTA board to opt for legal approach," Thapa said. According to NATTA, the sustainable development of the tourism sector can only be achieved through the cooperation of the government and private entrepreneurs.