MP Nisha Dangi calls for VAT removal on digital payments

KATHMANDU: Rastriya Swatantra Party (RSP) lawmaker Nisha Dangi has urged the government to abolish the Value Added Tax (VAT) imposed on digital payments.

Speaking at the House of Representatives on Friday, she highlighted that the VAT on digital transactions discourages the public from opting for cashless payments.

“I urge the government to take immediate action to make digital transactions free of charge without affecting existing payment gateways,” she stated.

The imposition of VAT on digital payments has led to increased service charges for platforms like PhonePe, eSewa, Khalti, and ConnectIPS.

Meanwhile, Nepal Rastra Bank has set a maximum transaction fee of NPR 10 for interbank fund transfers.