VAT on air services, fare increased by 6 percent

KATHMANDU: Airline companies have increased the air fare by 6 percent.

Following the imposition of a value-added tax by the government, air tickets have risen.

On Sunday, the Nepal Airlines Operators Association released a press statement in which they announced an increase in domestic flight rates.

The budget for fiscal year 2080/081 provides for the registration of air transportation services for value-added tax. On service costs, the government has imposed a 13% VAT.

Despite the adoption of VAT on airline tickets, the fee has not been raised at the rate of 13%. The 13 percent levy has not been raised since businesses would be reimbursed for VAT paid on purchases of aircraft fuel, office supplies, and so on.