July 28: Travel and tourism entrepreneurs have filed a writ petition at the Supreme Court against the government’s decision to impose value added tax (VAT) on air services. The businessmen decided to move the court after the government turned a deaf ear to their demand that such tax should not be imposed considering the crisis this sector has been facing post Covid-19 pandemic.

Nepal Association of Tour and Travel Agents (NATTA) on Thursday filed the petition demanding cancellation of VAT system on air services.

The government had imposed VAT on air services through the budget announced for the current fiscal year (FY 2023/24).

Ramesh Thapa, president of NATTA, said that the government did not respond to their request to amend the provision. According to him, NATTA decided to file the case as per the decision taken by the association’s former council members, NATTA’s incumbent members, legal professionals, tax consultants and NATTA board.

NATTA stressed on the need for cooperation between the government and the private sector for sustainable development of the tourism industry and that they are ready for discussion and cooperation.