Government Implements New Procedure to Allow Operation of In-flight Shops Inside Aircraft

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Government Implements New Procedure to Allow Operation of In-flight Shops Inside Aircraft

July 30: The government has issued a work procedure that allows international airline companies of Nepal to operate shops inside the aircraft during the flights. The Ministry of Culture, Tourism and Civil Aviation has implemented the 'On Board Duty Paid Store Operation Procedure-2079'. Along with this, the international airline companies of Nepal will be allowed to operate shops inside the aircraft.

The ministry has already published the procedure and implemented it. Currently, Nepal Airlines Corporation and Himalaya Airlines from the private sector are operating international flights. Now these airlines will be allowed to operate such shops inside the aircraft during the flight after taking approval from the ministry. The ministry said that the operation of shops inside the aircraft during the flight will generate additional income for the airlines.

The ministry said that such a procedure has been implemented with the aim of making the air service more effective, robust and sustainable and to help in revenue collection and foreign exchange earnings.

According to the new procedure, a shop can be operated for the sale of taxed items inside the flying aircraft. In order to operate such a service, the airline company has to submit an application to the ministry with the financial and technical feasibility of the service. The vendor selection process, the process to be followed to maintain the quality of items should also be mentioned in the application.

Similarly, there is a provision in the procedure for the airline companies to obtain prior approval from the customs office of the relevant airport for the sale of materials. Regarding the operation of such services, the airliners must follow the Revenue Leakage (Investigation and Control) Act 2052, the Value Added Tax Act 2052, the Income Tax Act 2058 and the regulations, procedures and guidelines made under those acts.

According to the procedure, the progress report of this service should be submitted to the ministry on a quarterly basis. Airlines implementing this service must also comply with the rules of the Civil Aviation Authority of Nepal as well as the Airport Service Fee Regulations-2078. They must also follow the procedures and o ther safety standards mentioned in the International Civil Aviation Organization (ICAO) rules.

 

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