July 31: The Supreme Court on Sunday issued an interlocutory order asking the government to not implement value added tax (VAT) on air tickets.    
The SC issued such an order in response to a writ petition filed by Nepal Association of Tours and Travels Agent (NATTA).    
A single bench of Justice Anil Kumar Sinha issued the order and also summoned the government side for discussion.    
NATTA had moved the SC on July 17, seeking mandamus order with certiorari against the government’s decision to impose VAT on air tickets.

Finance Minister Dr Prakash Sharan Mahat had announced to implement VAT on plane tickets during the budget announcement for the current fiscal year.    
The tourism entrepreneurs had however argued that the VAT imposed on air tickets was not friendly to tourism entrepreneurs and would impact adversely on the tourism business. Travel companies and passengers would have to bear the brunt of VAT, NATTA had argued. -- RSS