Airfares to increase
The government has ordered that air transport services be registered for value-added tax in the fiscal year 2080/81 budget.
KATHMANDU: Domestic airline service providers will collect the value-added tax by adding it in the airfare.
According to a press statement published by the Nepal Airline Operators Association, the value-added tax would be implemented today.
The government has ordered that air transport services be registered for value-added tax in the fiscal year 2080/81 budget.
“According to the provision mandated by the government through the budget statement, all airlines affiliated to this union are informed that the value-added tax will be included in the airfare rates and will be implemented from today,” the statement said.
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Domestic flight fares will rise marginally when the value-added tax rises, according to airlines.
Domestic flight prices would rise by 6%, according to Yeti Airlines spokeswoman Sudarshan Bartaula.
“Fuel and airport tax are also charged with VAT; there is no additional charge,” said Bartaula, a representative.
